FY 2021 BUDGET REQUEST Highlights from the County Perspective February 2020 | NACo.org Table of Contents Executive Summary...... 1

Overview: The President’s FY 2021 Budget Request...... 3

Detailed Budget Breakdown...... 13 Agriculture and Rural Affairs...... 14 Community, Economic and Workforce Development...... 18 Environment, Energy and Land Use...... 26 Health...... 32 Human Services and Education...... 39 Justice and Public Safety...... 46 Public Lands...... 54 Transportation and Infrastructure...... 62 Executive Summary COUNTY PRIORITIES AT PLAY IN THE PRESIDENT’S FY 2021 BUDGET REQUEST

The nation’s 3,069 counties play a key role in administering federal programs and services in our local communities. Counties build and maintain public infrastructure, transportation and economic development assets, provide criminal justice and public safety services, and protect the public’s health and well-being. Policies and programs established by the federal government help support and coordinate local efforts, and a strong partnership between all levels of government is critical to providing many of the programs and services on which America’s residents rely every day. This document includes summary charts highlighting proposed cuts, eliminations or increases to key federal programs in the president’s budget request for FY 2021 that are relevant to county governments and a section-by-section summary of the budget outlining items of note for county governments.

Source: Washington Post https://www.washingtonpost.com/graphics/2020/business/trump-budget-2021/

National Association of Counties | February 2020 | 1 POSITIVE PROPOSALS FOR COUNTIES

● $12 billion in funding for off-system bridges in FY 2021 and $810 billion over ten years to reauthorize surface transportation programs.

● Regulatory changes that would amend the burdensome Medicaid Inmate Exclusion Policy to prevent the termination of federal health benefits for juveniles and pre-trial inmates for six months, allowing for a more equitable distribution of costs for health care services between counties and the federal government.

● A $680 million increase in Career and Technical Education grants to expand access to these programs in high schools.

● More than $100 million in increased investment in U.S. Forest Service wildland fire management activities.

● Nearly $2 billion in new resources over the next decade to help jurisdictions implement federal child welfare reforms.

● Increased investments for opioid prevention, treatment and recovery services.

CHALLENGING PROPOSALS FOR COUNTIES

● Reduced federal contributions to the federal-state-local intergovernmental partnership from new funding limits proposed for numerous state and local grant and aid programs.

● Elimination of programs supporting housing and economic development including the Community Development Block Grant, the HOME Investment Partnerships Program and the Economic Development Administration.

● Changes to Medicaid, including state options for block grants and per-capita caps, that would reduce spending by $1.3 trillion over the next decade, shifting health care costs to counties.

● Elimination of the State Criminal Alien Assistance Program, a federal program that is used to reimburse state and local governments for the cost of incarcerating undocumented immigrants, currently funded at $244 million.

● Establishment of a “universal” work requirement across federal public assistance programs to promote self-sufficiency that could impose unfunded administrative requirements on county governments

● Reductions to rural broadband grant and loan programs under the U.S. Department of Agriculture could slow the deployment of high-speed broadband technology in rural America.

2 | NACo Analysis | President’s Budget Request FY 2021 Overview: The President’s FY 2021 Budget Request Top line numbers: The budget proposes significant spending cuts over the next ten years and relies on both significant cuts and optimistic economic growth Top Line Numbers assumptions to shrink the federal deficit over the next ten years. This year, the budget request follows Congress $4.8 TRILLION passing and the president signing a $2.7 trillion budget in total Federal Spending for FY 2021 agreement in August 2019, which raised federal discretionary spending caps for both FY 2020 and FY 2021 by nearly $320 billion over the next two years. $3 TRILLION Notably, the president’s budget adheres to the defense in Mandatory Spending for FY 2021 spending caps but proposes spending for non-defense discretionary programs below the funding levels set in the August budget deal. The budget outlines FY 2021 $1.34 TRILLION discretionary spending at $1.34 trillion and mandatory in Discretionary Spending for FY 2021 spending at $3 trillion. The total request, combined with net interest on the debt, is $4.8 trillion for FY 2021.

Debt and deficit: The president’s budget request estimates that it would achieve significant debt reduction over the next decade through both discretionary savings and reductions in mandatory spending to ultimately balance the budget by 2035. According to the White House Office of Management and Budget (OMB), debt under the budget would increase slightly from 80 percent of Gross Domestic Product (GDP) in 2020 to 81 percent by 2022 and then fall to 66 percent of GDP by 2030.

The president’s budget request estimates that deficits would peak at $1.1 trillion in 2020 and then fall gradually to $261 billion by 2030. The largest budgetary savings included in the proposal come from $1.55 trillion in cuts to non-defense discretionary programs. Other savings are generated from changes to health care and other safety net program reductions and reforms.

Source: CRFB, http://www.crfb.org/blogs/overview-presidents-fy-2021-budget

National Association of Counties | February 2020 | 3 The Federal Budget Process The President Submits Budget Proposal To Congress Under current law, the president must submit the budget request between the first Monday in January and the first Monday in February. President Trump released his budget proposal for FY 2021 on February 10th, after the statutory deadline (a common occurrence in recent years under various administration.)

House and Senate Budget Committees Develop and Report Budget Resolutions If the respective chambers pass these resolutions, they reconcile them in a budget conference. This sets the total amount of amount of money congressional Appropriations Committees may spend for the fiscal year. If the two chambers are not able to agree on a budget resolution, each chamber may enact a “deeming resolution,” which sets appropriations levels for that chamber’s Appropriations Committee.

House and Senate Appropriations Committees Allocate Funding to Federal Programs The Committees set specific discretionary funding levels for federal programs among 12 subcommittees, each dealing with a different part of the budget. After the respective chambers pass individual appropriations bills, they must go to conference to reconcile the appropriations bills for a final vote.

The President Signs Funding Bills into Law All 12 funding bills must be enacted in time for the beginning of the new fiscal year on October 1st. In recent years, the government has struggled to meet this deadline and instead passed temporary extensions of current spending levels, known as continuing resolutions, well into the new fiscal year.

MAJOR PROPOSALS INCLUDED IN THE PRESIDENT’S FY 2021 BUDGET REQUEST

● Reduced federal contribution to the federal-state-local intergovernmental partnership: The president’s budget proposes to significantly reduce federal contribution to the federal-state-local intergovernmental partnership by limiting funding for state and local grant and aid programs. The budget proposes to move much of the responsibility for many of the programs currently and historically funded by federal grants down to state and local governments including transportation infrastructure, workforce initiatives, economic development and health care. Combined, these changes would increase the fiscal burden for county governments that may be unable to adequately fill the gap left by a lack of federal resources, such as those whose ability to raise revenue is limited by state law.

Similar to last year’s budget request, to achieve the goal of reducing federal aid to state and local governments, the president’s budget request proposes a new program, the “Cross-Agency Priority (CAP) Goal: Results-Oriented Accountability for Grants.” The CAP proposal aims to ensure that federal grants are administered in the most efficient and effective way by using a risk-based and data-driven framework for grant awards to target grants to those areas that are most in need.

● Extending provisions under the Tax Cuts and Jobs Act (+$1.4 trillion over ten years): The president’s budget request assumes tax savings for individuals approved in 2017 as part of comprehensive tax reform (the Tax Cuts and Jobs Act, PL 115-97) would extend through 2035, instead of expiring as scheduled in 2025. This extension would significantly reduce federal revenues, ultimately costing $1.4 trillion over the next decade. The budget request does not propose any significant changes to the tax code beyond this assumption.

4 | NACo Analysis | President’s Budget Request FY 2021 ● Increased investments in infrastructure (+$1 trillion): The president’s budget proposes a new major infrastructure package to be paid for over ten years through $755 billion in Highway Trust Fund (HTF) contract authority authorized by a surface transportation reauthorization and $55 billion in authorizations of discretionary grant programs (e.g. BUILD grants). Together, these would fund an $810 billion, 10-year surface transportation reauthorization. In addition, the budget proposes to authorize a one-time mandatory budget authority of $190 billion for FY 2021, bringing the total infrastructure investment to $1 trillion. The White House’s proposal relies heavily on the HTF which is predicted to become insolvent as early as 2021. It does not identify a new source of revenue for the HTF which is primarily funded by the federal motor user fee, better known as the gas tax, and instead assumes a solution will be identified to return solvency to the fund, stating: “The Administration looks forward to working with the Congress to responsibly pay for the needed increases in surface transportation spending by enacting the Administration’s 10-year reauthorization with a combination of Budget savings proposals.”

● Reforming health care (-$1.6 trillion over ten years): Overall, the budget proposes to reduce projected heath spending by around $1.6 trillion over the next decade. Much of these savings ($844 billion) come from a plan to repeal and replace the Affordable Care Act (ACA) – effectively replacing the ACA’s premium subsidies and Medicaid expansion with a flexible state grant while also capping the growth of the base Medicaid program.

The budget also calls for roughly $509 billion in health savings from proposals to “reduce waste, fraud and abuse” in Medicaid and Medicare, such as reducing and reforming provider payments related to bad debts, post-acute care and uncompensated care. Additional reforms to modernize eligibility and benefits within Medicaid and the Children’s Health Insurance Program (CHIP) would yield $192 billion over the next decade. Additionally, the budget pushes for a new bipartisan initiative that would lower the cost of prescription drugs, which would save $135 billion over ten years.

FACILITATE PATIENT-CENTERED MARKETS Source: HHS https://www.hhs.gov/sites/default/files/fy-2021-budget-in-brief.pdf Transforming Medicaid ● RestructuringProtecting what Safety works andNet fixing Spending what’s (-$293broken means billion over tenThis years): Administration The president’s has ushered budget in a new proposes era of state to pare backprotecting and reform Medicare several and private safety-net insurance, programs. improving It proposes flexibilityto reduce in theMedicaid Supplemental program administration, Nutrition Assistance and has those programs, and fixing the failures of the Patient reset and restored the federal-state relationship while ProgramProtection (SNAP, and Affordable formerly Careknown Act as (ACA). food stamps) by $181 billionmodernizing over tenthe programyears by to restructuring deliver better benefitsoutcomes and limiting program eligibility. The budget further proposesfor implementing the people it serves. universal CMS haswork adop requirementsted new for federallyReform Healthcarefunded public assistance programs, including SNAP,strategies Medicaid for more and efficient rental assistance,approval of State by requiring Plan Amendments and waivers under Sections 1115 and able bodied adults to find employment or train for work in order to receive public assistance benefits. CMS is working to put American consumers back in 1915 of the Social Security Act. CMS is offering states charge of their health coverage and care, ensuring they unprecedented flexibility to design health programs receive value for their premium dollars and to ensure that meet their residents’ specific needs. By fostering there is a safety net for those that need it. stateNational innovation Association and pairing of itCounties with enhanced | February 2020 | 5 accountability and program integrity measures, we Protect Medicare are now on a path to ensuring program sustainability Under President Trump’s bold leadership, the while improving health outcomes for beneficiaries. Administration has taken significant steps to improve healthcare markets and streamline insurance rules. The Budget continues to promote Medicaid reforms by The President’s vision for healthcare reform will further saving approximately $920 billion over 10 years. strengthen and protect Medicare and private insurance, including through proposals that extend the Ensure Program Integrity solvency of the Medicare Hospital Insurance Trust Fund The Budget continues a commitment to the integrity of for at least the next 25 years and lower costs in the the Medicare and Medicaid programs, including paying individual health insurance market. the right amount to the right entity for the right beneficiary. CMS is improving payment accuracy, President Trump’s 2019 Executive Order, “Protecting enhancing provider and program oversight, and and Improving Medicare for Our Nation’s Seniors,” supporting law enforcement. In FY 2017, the builds on those aspects of the Medicare program that Administration’s Medicare program integrity initiatives work well, including market-based approaches in the saved the Medicare program an estimated current system. The Budget furthers these goals for $15.5 billion, for an annual return on investment of the Medicare program and saves proposes $10.8 for each $1 spent on such initiatives. The 2019 approximately $756 billion in gross Medicare savings Medicare Fee-for-Service improper payment rate was over 10 years. 7.25 percent, the lowest since 2010. The Budget will

Centers for Medicare & Medicaid Services 70 Major Proposed Increases in the President’s FY 2021 Budget Request

U.S. Department of Agriculture Rural Business and Industry Guaranteed Loan Program +$500 million (+34%) from FY 2020 Rental Assistance Program +$75 million (+5%) from FY 2020 U.S. Department of Education Individuals with Disabilities Grant Program +$100 million (+.7%) from FY 2020 Career and Technical Education State Grant Program +$680 million (+52%) from FY 2020 U.S. Department of Health And Human Services Interdepartmental HIV Initiative +$425 million (+146%) from FY 2020 Community Health Centers +$102 million (+2%) from FY 2020 Maternal and Child Health Block Grant +$74 million (+11%) from FY 2020 Community Mental Health Services Block Grant +$35 million (+5%) from FY 2020 State Opioid Response Grants +$85 million (+6%) from FY 2020 Child Care and Development Fund +$1.3 billion (+15%) from FY 2020 U.S. Department of Housing And Urban Development Moving to Work Program +$868 million (+19.6%) from FY 2020 Rental Assistance Demonstration** +$100 million (+100%) from FY 2020 U.S. Department of Homeland Security National Flood Insurance Program (NFIP) +$193 million (+4%) from FY 2020 U.S. Department of Interior Federal Aid in Wildlife Restoration Act +$146 million (+22%) from FY 2020 U.S. Department of Justice STOP School Violence Act +$75 million (+50%) from FY 2020 U.S. Department of Transportation Transit Formula Grants +$85 million (+.8%) from FY 2020 Off-System Bridges* +$11.22 billion (+1,444%) from FY 2020

*Likely reflects the administration’s intention to eliminate set-aside for one-time FY 2021 formula funding ** RAD is not a new program, but Congress has not appropriated new funds in several years

6 | NACo Analysis | President’s Budget Request FY 2021 Proposed New Programs in the President’s FY 2021 Budget Request

U.S. Army Corps of Engineers Funding for State and Local +$250 million in FY 2021 Directs the Corps to transfer appropriated Communities to Accelerate Water funds to non-federal sponsors to construct a Resource Projects project on their own, if desired U.S. Environmental Protection Agency America’s Water Infrastructure Act +$82 million in FY 2021 Grant programs would support states, (AWIA, P.L. 115-270) Grant Programs municipalities and private entities in financing high priority infrastructure investments U.S. Department of Health And Human Services Support for the Family First +$1.7 billion over 10 years Funding would assist jurisdictions with the Prevention Services Act (FFPSA) implementation of new federal requirements for the child welfare system Opportunity and Economic Mobility +500 million over 5 years Streamlines funding from multiple public Demonstration Program assistance programs and provides services that establish best practices for low-income individuals to become self-sufficient to states that may use this funding for startup costs, rigorous evaluations and technical assistance, and be held accountable for achieving targeted outcomes that focus on fostering employment, reducing welfare dependency, and promoting family well-being U.S. Department of Homeland Security National Security and Resilience +$406.9 million in FY 2021 Awards competitive grants to projects Grant Program that identify national priorities requiring innovative solutions and investments to build preparedness capabilities and awards funding for demonstration and evaluation projects addressing emerging natural hazards and evolving terrorism threats Targeted Violence and Terrorism +$10 million in FY 2021 Awards grants to support state, local, tribal Prevention Grant Program and territorial (SLTT) prevention efforts that address the recruitment or radicalization of individuals to violence by building community- level resilience and identifying the early signs of radicalization and providing appropriate interventions through civic organizations, law enforcement etc.

National Association of Counties | February 2020 | 7 Proposed New Programs in the President’s FY 2021 Budget Request

U.S. Department of Interior Public Lands Deferred Maintenance +6.5 billion over 5 years Addresses the deferred maintenance backlog Fund in national parks, forest, wildlife refuges, Bureau of Indian Education schools and other public lands with funding from federal off- and on-shore energy leases U.S. Department of Labor Paid Parental Leave Program +$21 billion over 10 years Directs employers to provide at least six weeks of paid parental leave to new and/or adoptive parents U.S. Department of Transportation* Building Infrastructure Great Grant +$60 billion Accelerates the delivery of “mega-projects” Program that are prone to delay due to cost constraints and complexity across a range of infrastructure sectors Moving America’s Freight Safely and +50 billion Supports projects with significant economic, Efficiently Grant Program mobility and safety benefits on highway, rail, port and waterway freight networks Bridge Rebuilding Grant Program +$35 billion Directs $12 billion toward off-system bridges via formula funding and the remaining $23 billion to larger bridges via competitive funding Revitalizing Rural America Grant +$25 billion Facilitates the delivery of broadband, Program transportation, water and other infrastructure projects to rural communities via formula funding to states and localities and bonus grants based on performance benchmark Transit State of Good Repair Sprint +$20 billion Compliments existing transit resources to Program address the state of good repair transit backlog

*New programs reflected under USDOT are a part of the White House’s infrastructure proposal and are not separate provisions in USDOT FY21 CJ. These programs would be administered by USDOT if the proposal was enacted.

8 | NACo Analysis | President’s Budget Request FY 2021 Major Proposed Decreases in the President’s FY 2021 Budget Request

U.S. Department of Agriculture Water and Waste Disposal Program -$99 million (-5%) from FY 2020 Supplemental Nutrition Assistance Program (SNAP) -$15.3 billion (-22%) from FY 2020 Special Supplemental Nutrition Program for Women, Infants and -$549 million (-9%) from FY 2020 Children (WIC) Rural Broadband -$57 million (-17%) from FY 2020 Community Facilities Loan Program -$300 million (-1%) from FY 2020 Single Family Housing Program -$90 million (-.4%) from FY 2020 USFS State and Private Forestry Program -$129.5 million (-37%) from FY 2020 U.S. Department of Commerce U.S. Census Bureau -$5.4 million (-4%) from FY 2020 U.S. Department of Education Elementary and Secondary Education Act Programs -$4.7 billion (-7.8%) from FY 2020 U.S. Environmental Protection Agency State Water Revolving Funds -$782 million (-28%) from FY 2020 State and Local Air Program Grants -$76.3 million (-25%) from FY 2020 Diesel Emissions Reduction Grants -$77 million (-89%) from FY 2020 Categorical Grants -$470.6 million (-44%) from FY 2020 Leaking Underground Storage Tank Program -$43.7 million (-48%) from FY 2020 Brownfields Program -$43.6 million (-21%) from FY 2020 Geographic Programs -$179 million (-35%) from FY 2020 U.S. Department of Health and Human Services Chronic Disease and Health Promotion -$427 million (-34%) from FY 2020 Health Workforce Programs -$824 million (-50%) from FY 2020 Federal Office of Rural Health Policy -$71 million (-22%) from FY 2020 Temporary Assistance for Needy Families (TANF) -$1.5 billion (-9%) from FY 2020 Medicaid -$920 billion over 10 years U.S. Department of Homeland Security State Homeland Security Grant Program -$228 million (-41%) from FY 2020 Urban Area Security Initiative -$238.6 million (-36%) from FY 2020 Flood Hazard Mapping and Risk Analysis Program -$163 million (-62%) from FY 2020 FEMA Disaster Relief Fund -$12.8 billion (-69.5%) from FY 2020

National Association of Counties | February 2020 | 9 Major Proposed Decreases in the President’s FY 2021 Budget Request

U.S. Department of Housing and Urban Development Tenant Based Rental Assistance -$5 billion (-21%) from FY 2020 Veterans Affairs Supportive Housing -$40 million U.S. Department of the Interior Payment in Lieu of Taxes (PILT)* -$74 million (-14%) from FY 2020 Historic Preservation Fund -$78 million (-65.5%) from FY 2020 National Park Service (NPS) Construction Account -$197 million (-50.5%) from FY 2020 Land Acquisition and State and Local Program Accounts -$197.5 million (-96%) from FY 2020 U.S. Department of Justice Byrne Memorial Justice Assistance Grants (JAG) -$135.5 million (-23%) from FY 2020 Community Oriented Policing Services (COPS) Program -$169 million (-49%) from FY 2020 U.S. Department of Labor Training and Employment Services -$250 million (-1%) from FY 2020 U.S. Department of Transportation INFRA Grant Program -$35 million (-2.5%) from FY 2020 FTA Capital Investment Grants $90 million (-4.5%) from FY 2020 Amtrak -$510 million (-25.5%) from FY 2020 FAA Airport Improvement Program -$400 million (-10.6%) from FY 2020 FAA Essential Air Service** -$16.4 million (-5%) from FY 2020 FAA NextGen Program -$230 million (-18.6%) from FY 2020

*Change from FY 2019 as Final FY 2020 PILT enacted level announced in June 2020 **Includes discretionary funding and mandatory FAA fees

10 | NACo Analysis | President’s Budget Request FY 2021 Major Proposed Eliminations in the President’s FY 2021 Budget Request

U.S. Department of Agriculture Rural Business Development Grant Program $37 million in FY 2020 Delta Regional Authority & Appalachian Regional Commission Grant $9 million in FY 2020 Programs Intermediary Relending Program $19 million in FY 2020 Rural Economic Development Loan and Grant Program $60 million in FY 2020 Rural Cooperative Development Loan Program $6 million in FY 2020 Value Added Producers Grant Program $12 million in FY 2020 Rural Energy for America Guaranteed Loan Program $20 million in FY 2020 USFS Land Acquisition Program $79.7 million in FY 2020 U.S. Department of Education Public Service Loan Forgiveness Program $1.9 billion in FY 2020 U.S. Department of Commerce Economic Development Administration 301.4 million in FY 2020 U.S. Department of Health And Human Services TANF Contingency Fund $608 million in FY 2020 Social Services Block Grant $1.7 billion in FY 2020 Low Income Heating and Energy Assistance Program $3.7 billion in FY 2020 Community Services Block Grant $740 million in FY 2020 Preschool Development Grants $275 million in FY 2020 U.S. Department of Housing And Urban Development Community Development Block Grant $3.4 billion in FY 2020 Housing Trust Fund $298 million in FY 2020 Choice Neighborhoods $175 million in FY 2020 HOME Investment Partnership $1.4 billion in FY 2020 U.S. Environmental Protection Agency ENERGY STAR and Voluntary Climate Programs $66 million in FY 2020 Natural Estuary Program $29.8 million in FY 2020 U.S. Department of Energy Energy Efficiency and Renewable Energy $2.1 billion in FY 2020 Loan and Loan Guarantee Programs $205 million in FY 2020

National Association of Counties | February 2020 | 11 Major Proposed Eliminations in the President’s FY 2021 Budget Request

U.S. Department of the Interior Geothermal Royalty Payments to Counties $3.8 million in FY 2020 National Park Service (NPS) Centennial Challenge Fund $15 million in FY 2020 Cooperative Endangered Species Conservation Fund (discretionary $54.5 million in FY 2020 account) U.S. Department of Justice State Criminal Alien Assistance Program (SCAAP) $244 million in FY 2020 U.S. Department of Transportation Transportation Alternatives Program $850 million in FY 2020 Small Community Air Service Development Program $10 million in FY 2020

Assistance to Small Shipyards Grant Program $20 million in FY 2020 Port Infrastructure Development Program $225 million in FY 2020 FRA Restoration and Enhancement Grants $2 million in FY 2020 FRA State of Good Repair Grants $200 million in FY 2020

12 | NACo Analysis | President’s Budget Request FY 2021 Detailed Budget Breakdown

National Association of Counties | February 2020 | 13 US Secretary of Agriculture Sonny Perdue speaks during the general session of the NACo Legislative Conference in Washington D.C. in March, 2019

Agriculture and Rural Affairs Nearly two-thirds of the nation’s 3,069 counties are designated as rural, with a combined population of 60 million. Rural counties provide the vast majority of food, energy and environmental benefits for the rest of the country, and are impacted by federal rural development programs, rural renewable energy development, research and extension, food safety and conservation programs.

U.S. DEPARTMENT OF AGRICULTURE (USDA) FY 2021 REQUEST: $21.8 BILLION | $1.9 BILLION DECREASE FROM FY 2020 USDA provides leadership on food, agriculture, natural resources, rural development, nutrition, and related issues based on sound public policy, scientific evidence, and efficient management. While the overall funding level for USDA is a decrease from FY 2020, the president’s budget request includes $3.4 billion for Rural Development, an increase of nearly $200 million. The president’s budget also notes that USDA “has provided $28 billion in trade mitigation assistance” aimed at “assisting farmers suffering from damage due to unjustified retaliation by foreign nations” as well as $5.7 billion in supplemental disaster assistance for farmers.

Programs throughout USDA, especially its Rural Development programs, help counties invest in rural infrastructure and community development and provide nutritional assistance and access to critical health care services to some of our nation’s most underserved communities.

14 | NACo Analysis | President’s Budget Request FY 2021 Rural Business Cooperative Services (RBCS) FY 2021 REQUEST: $1.6 BILLION | $108 MILLION INCREASE FROM FY 2020 RBCS programs support technical assistance (TA), training and other activities to help with the development or expansion of small businesses in rural counties. Though the budget proposes to increase funding for RCBS due to increased investment in the Rural Business and Industry Guranteed Loan Program, it also proposes cuts or eliminations across other “wasteful spending” and argues that “proposed tax, regulatory and infrastructure policies within the budget would be more effective than RBCS at improving rural economies and job growth.” The proposal proposes the elimination of RCBS programs it calls “duplicative” because they overlap with similar business development programs operated by other federal agencies, including:

• Rural Business Development Grant Program (funded at $37 million in FY 2020)

• Delta Regional Authority Grants/Appalachian Regional Commission (funded at $9 million in FY 2020)

• Intermediary Relending Program (funded at $19 million in FY 2020)

• Rural Economic Development Loan and Grant Program (funded at $60 million in FY 2020)

• Rural Cooperative Development Grant Program (funded at $6 million in FY 2020)

• Value-Added Producer Grants Program (funded at $12 million in FY 2020)

• Rural Energy for America Guaranteed Loan Program (funded at $20 million in FY 2020)

Counties support adequate funding for RBCS and urge Congress to provide needed support to USDA so that it may explore innovative approaches for building community capacity and introduce additional economic enhancement opportunities to rural businesses.

Rural Business and Industry Guaranteed Loan Program FY 2021 REQUEST: $1.5 BILLION| $500 MILLION INCREASE FROM FY 2020 This program supports private sector loans to rural small businesses. The president’s budget proposes an increase for this program because it “promotes the creation of rural businesses to secure start-up capital, finance business expansion, and create jobs, which helps to diversify the rural economy.”

Rural Utilities Service FY 2021 REQUEST: $942 MILLION | $192 MILLION INCREASE FROM FY 2020 The Rural Utilities Service’s mission is to enhance the quality of life and improve economic opportunity in rural communities by providing financing for the basic infrastructure of modern life.

Counties support adequate funding for the Rural Utilities Service.

National Association of Counties | February 2020 | 15 Water and Waste Disposal Programs FY 2021 REQUEST: $1.9 BILLION | $99 MILLION DECREASE FROM FY 2020 These grants and loans help counties fund and finance critical water and waste infrastructure and provide access to clean water in rural communities. The president’s budget request includes $1.27 billion in direct loans (a $130 million decrease from FY 2020) and $58 million (an $8 million increase from FY 2020) in guaranteed loans for water and waste disposal facilities to provide safe and sanitary water services. The request assumes that “some demand will shift to Guarantees now that the population limit has been expanded to 50,000 in the most recent Farm Bill,” and that the $8 million increase combined with an expected carryover of $664 million from 2020 into 2021 will meet that growing demand. The president’s budget request also includes $614 million in grants (a $23 million increase from FY 2020) to meet the needs of communities “that are most rural and most poor that need higher levels of grant funding per project to be successful.”

Rural Broadband FY 2021 REQUEST: $280 MILLION | $57 MILLION DECREASE FROM FY 2020 Rural Broadband loan and grant programs help deploy essential broadband infrastructure in under and unserved rural counties. The president’s budget requests $250 million for the Rural E-Connectivity Pilot Program (a $50 million decrease from FY 2020) which provides combined direct loan and grant packages for rural broadband infrastructure investment, and $30 million for rural broadband grants (a $5 million decrease from FY 2020.) The request also proposes the elimination of direct loans (a $2 million decrease from FY 2020.)

The lack of broadband infrastructure in rural communities has severely impaired the potential of rural communities to attract and retain new businesses. Increased deployment of advanced technology has major implications for rural counties including improved healthcare services through telemedicine, long distance education, attraction of quality economic development, and improved wages and employment. Counties support action that hastens the deployment of high-speed broadband technology in rural America.

Distance Learning Telemedicine Program FY 2021 REQUEST: $44 MILLION | $6 MILLION DECREASE FROM FY 2020 This program provides rural counties with telecommunication technologies that facilitate access to health care and education services and ultimately improve the quality of life for residents in rural communities. The request does not include the set aside for Section 370G, Delta Health care, as “funding for this purpose can be provided through the regular grants.” Twenty percent of requested funding for these grants would support “projects that combat the opioid crisis and keep rural communities safe.”

Rural Housing Service FY 2021 REQUEST: $1.5 BILLION | $91.6 MILLION DECREASE FROM FY 2020 The Rural Housing Service (RHS) offers a variety of programs to build or improve housing and essential community facilities in rural areas. Funds are disseminated via loans, grants, and loan guarantees.

Counties support adequate funding for the Rural Housing Service.

16 | NACo Analysis | President’s Budget Request FY 2021 Community Facilities Loan Program (CFP) FY 2021 REQUEST: $3 BILLION | $300 MILLION DECREASE FROM FY 2020 CFP provides funding for a wide range of essential community facilities to rural communities with populations of 20,000 or less, with priority given to health, public safety and education facilities. The president’s budget request proposes $500 million for CFP guaranteed loans, which is level with FY 2020. However, it proposes to decrease funding for CFP direct loans by $300 million, arguing this level will “meet anticipated demand and can be delivered with the existing staffing levels” and that “continued leveraging of financial resources from the capital credit markets and other funding partners will ensure this program’s success.”

Single Family Housing (SFH) Programs FY 2021 REQUEST: $24 BILLION | $90 MILLION DECREASE FROM FY 2020 SFH programs provide loans, grants, and guarantees to finance the construction, purchase, and repair of single- family homes that enable very low, low, and moderate-income individuals and families to live in decent, safe, sanitary, and affordable housing. The president’s budget requests level funding with FY 2020 ($24 billion) for the SFH guaranteed loan program, which is limited to families with incomes less than 115 percent of area median income. It proposes to eliminate the SFH direct loan program (funded at $90 million in FY 2020), through which USDA may underwrite and service loans for eligible low- and very low income applicants with payment assistance at market interest rates, to “focus on creating homeownership opportunities through the guaranteed program” for an estimated 160,000 families.

Multi-Family Housing (MFH) Programs FY 2021 REQUEST: $230 MILLION | LEVEL WITH FY 2020 These direct and guaranteed loans provide financing for rental housing projects and rental assistance payments for rural residents with low, very low, and moderate incomes. Currently, over 650,000 limited-income individuals, many of whom are elderly, with an average annual income of about $11,176, reside in approximately 426,600 direct portfolio units in rural counties across the country. The president’s budget request proposes to provide level funding with FY 2020 ($230 million) for MFH guaranteed loans to support the development of more than 8,000 housing units but proposes the elimination of the MFH direct loan program (funded at $40 million in FY 2020). The request proposes to also require tenants utilizing rental assistance to contribute a minimum rent of $50 per month, unless the tenant qualifies for a hardship exemption as determined by the secretary.

Rental Assistance Program FY 2021 REQUEST: $1.45 BILLION | $75 MILLION INCREASE FROM FY 2020 The president’s budget request proposes to increase Rental Assistance, which supports families benefitting from the MFH program, by $35 million. The request also includes a proposal to consolidate the Rural Housing Voucher program (funded at $40 million in FY 2020) into the Rental Assistance account. The voucher program enables tenants of foreclosed properties or those that have prepaid mortgages to access affordable housing, with the Rental Assistance program account.

National Association of Counties | February 2020 | 17 Waukesha County, Wis. Supervisor Larry Nelson participates in a Capitol Hill briefing on the importance of CDBG Community, Economic and Workforce Development On behalf of our communities and citizens, counties invest $25.6 billion annually in economic planning and housing development and collaborate with businesses to improve the local economy. In response to changing economic environments, counties work with all levels of government and partner with the private sector to meet the needs of our communities. Counties are often the fundamental platform for collaboration in building regional and state economies as well as the U.S. economy.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) FY 2021 REQUEST: $47.9 BILLION | $8.6 BILLION DECREASE FROM FY 2020 The Department of Housing and Urban Development (HUD) supports safe, decent, and affordable housing for Americans and provides access to homeownership opportunities. The requested decrease for HUD reflects “a commitment to fiscal responsibility, targeting lower value HUD programs for elimination or reduction, while seeking stable or increased funding into the highest impact programs that provide housing and support for vulnerable populations.”

In 2016, counties invested more than $11.5 billion in housing and community development. Counties depend on federal and state investments to leverage other public and private sector funding for vital housing and community development projects in local communities.

18 | NACo Analysis | President’s Budget Request FY 2021 Office of Community Planning and Development FY 2021 REQUEST: $ 3.1 BILLION | $4.9 BILLION DECREASE FROM FY 2020

Community Development Block Grant (CDBG) FY 2021 REQUEST: ELIMINATED | FUNDED AT $3.4 BILLION IN FY 2020 CDBG is a key housing and economic development program for states and localities. Counties leverage CDBG with private and nonprofit funding to address many local needs, such as affordable housing and bottlenecks in economic development. The budget proposes the elimination of, arguing it is “not well-targeted and is used for a wide range of activities that would be better performed by state and local governments” and that the funds should be redirected to “higher priority activities.” The request also proposes to work with the Congress to reform and redesign how the federal government supports states, local communities and disaster survivors after large-scale catastrophic disasters. The president’s budget requests an assessment of current programs encompassing 17 different federal departments and agencies, including the HUD-CDBG Disaster Recovery (DR) program which it calls “slow, unpredictable, and wasteful.”

Counties strongly support CDBG, which we use to fund vital community, infrastructure and economic development programs. Counties utilize HUD-CDBG DR and other federal disaster programs to improve housing and economic needs for disaster survivors in the short and long-term across the U.S.

HOME Investment Partnerships (HOME) FY 2021 REQUEST: ELIMINATED | FUNDED AT $1.4 BILLION IN FY 2020 The administration proposes the elimination of this program, which helps counties design and implement affordable housing programs for low-income residents, arguing that “state and local governments are better positioned to more comprehensively address the unique market challenges and local policies that lead to affordable housing problems.” Close to 200 counties directly received $400 million in HOME in FY 2019.

NACo supports continued federal investments in the HOME Investment Partnerships program.

2018 HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM PROFILES

Explorer.NACo.org $0.00 $1.00 $500.00K $1.00M $3.00M $75.48M

National Association of Counties | February 2020 | 19 Homeless Assistance Grants (HAG) FY 2021 REQUEST: $2.8 BILLION | LEVEL WITH FY 2020 The Homeless Assistance Grants (HAG) primarily funds the Continuum of Care (CoC) program, which provides competitive funding to support coordinated and locally driven community-based networks of programs to prevent and address homelessness across the United States. The president expects the request so support the “approximately 1.1 million individuals who experience homelessness each year. The request for HAG includes $280 million for Emergency Solutions Grants (ESG), a $59 million decrease from FY 2020. ESG supports emergency shelter, rapid re-housing, and homelessness prevention.

Housing & Rental Assistance Programs FY 2021 REQUEST: $42.4 BILLION | $3.8 BILLION DECREASE FROM FY 2020 The president’s budget proposes multiple cross-program reforms to the rent structure within housing and rental assistance programs because it “creates disincentives to employment; imposes large administrative burdens for Public Housing Authorities (PHAs), private owners, and tenants; generates significant and increasing costs to the federal government; and ultimately represents a one-size-fits-all approach that cannot reasonably offer the programmatic flexibility to meet the needs of households in communities across the nation.” Proposed reforms include: • Simplifying rent calculations by determining rents using gross rather than adjusted income. • Limiting income recertification for all households to once every three years, which encourages work by deferring increases in tenant rent payments as a result of increased wages. • Increasing tenant rent contributions, which are currently 30 percent of adjusted income, to 35 percent of gross income (while setting a lower rent of 30 percent of gross income for those unable to work, notably the elderly and persons with disabilities.) • Empowering PHAs and property owners to choose alternative rent structures, as approved by the Secretary, that would “best serve the needs of households in localities across the nation” but must incur the same overall program

costs and encourage self-sufficiency. Secretary of Housing and Urban Development Ben Carson address the General Session of NACo’s 2019 Legislative Conference Moving to Work Program FY 2021 REQUEST: $ 5.2 BILLION | $868 MILLION INCREASE FROM FY 2020 The president’s budget requests $5.2 billion to shift the Moving to Work (MTW) demonstration program— currently housed in both the Public Housing and Housing Choice Vouchers (HCV) accounts—into a new, separate account. MTW was developed in 1996 to give housing authorities (PHAs) “flexibility in designing and testing non-traditional policies and programs that better address the issues surrounding low-income housing in their communities.” The request to create a separate account for MTW would “eliminate administrative burden, simplify the tracking of funds, and provide greater transparency regarding the funding needs of the MTW demonstration program.”

20 | NACo Analysis | President’s Budget Request FY 2021 Tenant Based Rental Assistance (TBRA) FY 2021 REQUEST: $18.8 BILLION | $5 BILLION DECREASE FROM FY 2020 TBRA, commonly known as the Housing Choice Voucher (HCV) program, helps around 2.3 million extremely low- to very low-income households to rent housing in the private market. About 2,200 state and local PHAs administer the HCV program, and it is the largest income-targeted rental assistance program. Of the households currently receiving HCV assistance, over half are either elderly or have a disabled head of household, and 75 percent are extremely low-income with incomes at or below 30 percent of the area median income. The requested decrease reflects the budget’s proposed reprogramming of funds to a new separate Moving to Work (MTW) new account.

Counties support increased federal funds for Housing Choice Vouchers, a key program that assists low-income families, the elderly and the disabled with housing in the private market.

Housing Trust Fund (HTF) FY 2021 REQUEST: ELIMINATED | FUNDED AT $298 MILLION IN FY 2020 HTF funding goes to states to support the development, rehabilitation and preservation of affordable housing for extremely low-income households. The budget proposes to eliminate the assessments on Fannie Mae and Freddie Mac, thereby discontinuing any new funding of the HTF, arguing it would “devolve some affordable housing activities to state and local governments who are better positioned to comprehensively address the array of unique market challenges, local policies and impediments that lead to housing affordability problems.”

Counties urge Congress and HUD to provide for the allocation of HTF funds to local governments. Driving HTF resources to the local and county levels will ensure these federal affordable housing resources are effectively targeted and tailored to meet the unique and individualized affordable housing needs of local communities across the nation.

Housing and Urban Development Veterans Affairs Supportive Housing (HUD-VASH) Program FY 2021 REQUEST: $0 | $40 MILLION DECREASE FROM FY 2020* *The president’s budget proposes to maintain existing HUD-VASH contracts but it does not propose funding for new vouchers Administered jointly by the U.S. Departments of Housing and Urban Development (HUD) and Veterans Affairs (VA), the HUD-VA Supportive Housing (HUD-VASH) program combines housing rental assistance with wraparound veterans’ case management services to reduce veterans’ homelessness. The president’s budget request proposes to maintain existing HUD-VASH contracts but does not seek funding for new vouchers, stating that HUD and the VA will “continue to successfully administer HUD-VASH, and continue to improve the efficacy of the program.”

NACo strongly supports the continued appropriation of resources through HUD-VASH vouchers to reach the goal of ending homelessness among veterans and their families.

National Association of Counties | February 2020 | 21 Rental Assistance Demonstration (RAD) FY 2021 REQUEST: $100 MILLION | $100 MILLION INCREASE FROM FY 2020* * RAD is not a new program, but Congress has not appropriated new funding since the program was first authorized in 2012. The RAD program was created to maintain and improve the nation’s affordable housing inventory, by allowing RAD helps local housing agencies revitalize and preserve some public housing by permitting them to convert public housing units to “Section 8” rental assistance subsidies, which in turn enables them to more easily obtain private investment for renovation. The president’s budget proposes to expand the RAD program with new funding and by eliminating the cap Stanley Moore, Cook County, Ill., speaks during the “2020 Census: Making it Count” session at the 2019 NACo Annual Conference on the number of public housing units allowed to convert under RAD to “empower Public Housing Agencies (PHAs) to make local decisions about how best to use their properties to meet the needs of their communities,” by leveraging public and private financing to improve housing for low-income families. The proposal would also streamline the program’s administrative requirements.

Counties support the elimination of the RAD cap and funding for this program to assist with preservation of and improving quality of public housing units.

Choice Neighborhoods FY 2021 REQUEST: ELIMINATED | FUNDED AT $175 MILLION IN FY 2020 The Choice Neighborhoods Initiative provides competitive planning and implementation grants to improve neighborhoods with distressed public housing. The president’s budget proposes the elimination of for the program and “recognizes a greater role for state and local governments, the private sector and non-profits to address community and economic development needs in localities across the nation.”

U.S. DEPARTMENT OF COMMERCE FY 2021 REQUEST: $7.9 BILLION | $7.3 BILLION DECREASE FROM FY 2020 The U.S. Department of Commerce (DOC) promotes job creation and economic growth. Counties utilize the department’s grants and technical assistance to revitalize distressed communities across this nation and spur job creation and economic development. The president’s budget request for DOC “prioritizes and protects investments in core Government functions such as completing the 2020 Decennial Census.”

Economic Development Administration (EDA) FY 2021 REQUEST: ELIMINATED | FUNDED AT $333 MILLION IN FY 2020 The EDA supports regional strategies for long-term growth and serves as a catalyst in helping communities achieve economic growth. The budget proposes the elimination of the EDA because its programs are “duplicative of other economic development programs within the federal government, as well as State and local efforts” and its projects “fail to deliver on promised jobs or private investment.” The FY 2021 request proposes to cover the costs associated with closing down the agency.

Counties strongly support full funding for the EDA, which is particularly important for the economic growth and development of rural counties.

22 | NACo Analysis | President’s Budget Request FY 2021 U.S. Census Bureau FY 2021 REQUEST: $1.7 BILLION | $5.9 BILLION DECREASE FROM FY 2020 The Census Bureau measures and disseminates information about the nation’s dynamic economy, society, and institutions, fostering economic growth and advancing scientific understanding, and facilitating informed decisions. In FY 2021, the Decennial Census will enter its final phase. The results of the 2020 Census will determine how more than $900 billion in annual funding is allocated and congressional seats are apportioned, which could change in 13 states. Following a decade of planning and execution, the Census Bureau will “ramp down the massive coordination of people and infrastructure that supported the 2020 Decennial Census.” The decreased request in the president’s budget reflects the ramping down of these efforts.

Counties support full funding for the Census Bureau.

U.S. DEPARTMENT OF LABOR (DOL) FY 2021 REQUEST: $11.1 BILLION | $1.3 BILLION DECREASE FROM FY 2020 DOL promotes the welfare of workers, job seekers and retirees by helping them improve their skills and obtain or retain employment. Workers are the backbone of the American economy, and the nation needs a skilled and competitive workforce to keep the economy growing. States and localities receive federal funding from DOL to assist with meeting the needs of jobseekers and businesses alike. The president’s budget request for DOL “focuses on its highest priority functions and restores fiscal discipline byeliminating programs that are duplicative, unnecessary, unproven, or ineffective” and “takes steps to reorganize and modernize DOL’s operations so taxpayer dollars are spent efficiently.”

Counties know that in order to address the community development social and economic needs in urban, suburban and rural counties, federal programs must be funded at levels commensurate with national needs. The Department of Labor helps to stimulate local economies and leverage private sector resources.

New programs and proposals within the DOL request include:

• Job Training for Employment in High Growth Industries: The budget proposes to to double the H-1B visa fees authorized under the American Competitiveness and Workforce Improvement Act (ACWIA). Currently, a portion of these fees support training in high-growth sectors. To increase that support and “prepare American workers for jobs currently filled by foreign workers, especially in STEM fields,” large employers and small employers would now pay $3,000 and $1,500 per worker, respectively.

• Departmental Reorganization: The administration proposes to move towards reorganizing and consolidating the 40 federal workforce development programs currently spread across 15 agencies. The administration has proposed to streamline the system with a government-wide restructuring and consolidation proposal beginning with a transfer of the Social Security Administration’s Ticket to Work program to DOL, where it would be “simplified, streamlined and improved to better accomplish its goal of getting individuals with disabilities back into the labor force.”

• New Paid Parental Leave Program ($21 billion over ten years): The administration proposes to establish a paid parental leave benefit to provide at least six weeks of paid parental leave to new mothers and fathers, including adoptive parents, allowing them to spend time with their children during the earliest and some of the most critical moments of their lives. Using the Unemployment Insurance (UI) system as a base, the proposal “allows states to establish paid parental leave programs in a way that is most

National Association of Counties | February 2020 | 23 appropriate for their workforce and economy.” The paid parental leave proposal consists of $28.1 billion in benefit and program administration costs, offset by $7.3 billion in savings associated with increased state revenues. Counties strongly support family and medical leave programs that permit county employees to attend to family and medical matters without the threat of the loss of one’s job or the loss of benefits or seniority

Training and Employment Services (TES) FY 2021 REQUEST: $3.36 BILLION | $250 MILLION DECREASE FROM FY 2020 TES programs provide employers with skilled and qualified workers to fill their current and future openings and help Americans get and keep family-sustaining jobs. The majority of the program activities are authorized by the Workforce Innovation and Opportunity Act (WIOA) The requested decrease in funding for TES reflects a proposed $110 million reduction in reserve funds to help states and localities facing mass layoffs and natural disasters. The president’s budget request also proposes the elimination of the National Farmworker Jobs Program (funded at $92 million in FY 2020), which it calls “duplicative in that it creates a parallel workforce system for migrant and seasonal farmworkers, despite the fact that they are eligible to receive services through the core WIOA formula programs.”

Workforce Innovation and Opportunity Act (WIOA) Title I FY 2021 REQUEST: $2.82 BILLION | LEVEL WITH FY 2020 WIOA is the modernized workforce development system designed to meet the needs of employers and jobseekers alike. The administration’s request proposes to provide level funding of $854.6 million for adult programs, $1.052 billion in formula grants for dislocated workers and $913 million for youth programs. The budget also includes several proposals “to help states and localities make the best possible use of their funding”. These proposals include: • Granting automatic WIOA training provider eligibility to institutions of higher education that already qualify as eligible to participate in Federal Student Aid (FSA) programs, such as Pell grants, authorized by Title IV of the Higher Education Opportunity Act. • Raising from 20 percent to 40 percent the cap on local areas providing incumbent worker training, to be used to support apprenticeship programs. • Raising from 20 percent to 50 percent the cap on local areas providing incumbent worker training if the local area is experiencing an unemployment rate at or below 3 percent to “allow local areas in a tight labor market to shift strategies to upskilling and reskilling current workers to address longer-term workforce challenges.”

Counties support WIOA as the largest source of federal funding for workforce development activities.

24 | NACo Analysis | President’s Budget Request FY 2021 Apprenticeships FY 2021 REQUEST: $200 MILLION | $25 MILLION INCREASE FROM FY 2020 DOL Apprenticeship programs combine job-related technical instruction with structured on-the-job learning experiences. The president’s budget request proposes an increase for this program to support “the Department’s mission of helping American workers gain and maintain family-sustaining careers and supporting a skilled American workforce that meets the needs of job-creators,” calling apprenticeships a “proven earn- while-you-learn strategy that equips workers with the skills and experience they need to fill high-paying jobs in in-demand fields.”

Youthbuild FY 2021 REQUEST: $84.5 MILLION | $10 MILLION DECREASE FY 2020 Youthbuild targets at-risk high school dropouts who are particularly vulnerable in the current economy and provides them with opportunity to gain education and occupational skills to prepare them for employment. The requested decrease in funding for Youthbuild would, according to the president’s budget request, still “support the continued focus on assisting participants to attain credentials and post-program placement in jobs with career advancement potential, in post-secondary education including community colleges, and into apprenticeships.”

Counties encourage the federal government to expand funding to meet demand for YouthBuild, which serves counties and provides effective pathways to education, workforce training, community service and leadership training for low-income young adults who are unemployed or do not hold a high school diploma.

National Association of Counties | February 2020 | 25 NACo’s Environment, Energy and Land Use (EELU) Policy Steering Committee Chair Melissa Cribbins from Coos County, Oregon testifies before the U.S. House Energy and Commerce Committee’s Subcommittee on Environment and Climate Change on the county role in environmental stewardship, land use and economic resiliency. Environment, Energy and Land Use Counties are tasked with ensuring environmental protection while maintaining the economic vitality of our local communities. The county role in environmental protection and energy is varied across states, ranging from air and water quality protection, solid waste disposal and energy resource allocation. In many cases, counties serve as co-regulators with states and the federal government at the local level.

U.S. ENVIRONMENTAL PROTECTION AGENCY (EPA) FY 2021 REQUEST: $6.7 BILLION | $2.4 BILLION DECREASE FROM FY 2020 EPA is the federal agency responsible for implementing and enforcing rules designed to protect human health and the environment. The budget proposes to eliminate 50 programs and reduce funding for several others within EPA in order to “promote stewardship of taxpayer resources by reducing wasteful spending on duplicative programs and ensuring that grants are targeted effectively.” The proposal prioritizes EPA’s “key responsibilities under the Nation’s environmental statutes” such as providing safe drinking water, supporting attainment of national air quality standards, cleaning up the nation’s most complex hazardous waste sites, ensuring the safety of chemicals in the marketplace, and conducting cutting-edge environmental research.

State and Tribal Assistance Grants (STAG) FY 2021 REQUEST: $2.85 BILLION | $1.4 BILLION DECREASE FROM FY 2020 STAG programs provide financial assistance to states, municipalities, and tribal governments to fund a variety of drinking water, wastewater, air, and Brownfields environmental projects. According to the budget, requested funding for these programs will “help fulfill the federal government’s commitment to help our state, tribal, and local partners comply with federal environmental requirements to ensure public health and revitalize contaminated properties.” Requested funding decreases across STAG programs reflect a commitment “to eliminate or substantially reduce Federal investment in State environmental activities that go beyond EPA’s statutory requirements,” including:

26 | NACo Analysis | President’s Budget Request FY 2021 State and Local Air Program Grants FY 2021 REQUEST: $228.2 MILLION | $76.3 MILLION DECREASE FROM FY 2020 State and Local Air Program Grants assist states, tribes and local air pollution agencies for prevention, control, abatement and implementation of air quality control programs. The president’s budget request proposes to decrease funding for these grants, stating that EPA will use the remaining funding level to “work with states to target funds to core requirements while providing flexibility to address state priorities.” Counties recommend an increase in federal technical and financial assistance to states and local governments for the development and administration of local air pollution control programs, which includes expansion of federal air pollution research programs for development and local implementation of strategies designed to reduce air pollutants.

State Water Revolving Funds FY 2021 REQUEST: $2 BILLION | $782 MILLION DECREASE FROM FY 2020 The Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF) programs help finance state and local drinking water and wastewater infrastructure projects. The budget proposes to reduce funding for both programs, stating that in combination with the Water Infrastructure Finance and Innovation Act, the requested funding level will still provide “adequate support” for water and wastewater infrastructure. Counties support funding for CWSRF and DWSRF, which help us fulfill federal mandates under the Safe Drinking Water Act (SDWA).

Diesel Emission Reductions Grants (DERA) FY 2021 REQUEST $10 MILLION | $77 MILLION DECREASE FROM FY 2020 DERA grants help local governments and other entities install modern pollution control equipment on trucks, buses and heavy equipment, which assists counties in meeting federal air quality standards. The president’s budget request proposes to decrease funding for DERA grants, preserving $10 million “to target priority areas such as clean school bus retrofits and rebates.” Counties support full funding for DERA to help us reduce particulate matter pollution, which is a factor in nonattainment.

Categorical Grants FY 2021 REQUEST: $605.4 MILLION | $470.6 MILLION DECREASE FROM FY 2020 Categorical grants help fund state environmental program offices and activities, which work to implement and enforce federal environmental laws. The president’s budget request proposes to decrease funding, suggesting that “states could adjust to reduced funding levels by reducing or eliminating additional activities not required under federal law, prioritizing programs, and seeking other funding sources.”

National Association of Counties | February 2020 | 27 Water Infrastructure Finance and Innovation (WIFIA) Direct Loans FY 2021 REQUEST: $25 MILLION | $35 MILLION DECREASE FROM FY 2020 Through WIFIA, EPA provides low interest federal loans or loan guarantees to eligible entities to support a wide range of nationally and regionally significant water and wastewater projects. The president’s budget requests decreased funding for WIFIA Direct Loans, stating that “the WIFIA Program requires a small appropriation compared to its potential loan volume and is expected to leverage significant funding for infrastructure” even with the reduced request. When selecting projects, EPA will prioritize certain attributes “such as the extent of private financing, the ability to serve regions with significant water resource challenges, the regional or national significance, the likelihood that the project can proceed at an earlier date due to WIFIA financing and the extent to which the project uses new or innovative approaches.”

Counties call for a reliable, long-term and substantially increased federal investment in water infrastructure, watershed protection and the protection of water resources and facilities from physical and chemical security threats.

Leaking Underground Storage Tank Program (LUST) FY 2021 REQUEST: $48.2 MILLION | $43.7 MILLION DECREASE FROM FY 2020 LUST programs manage the cleanup of areas impacted by leaking tanks, ensuring that risks to human health and the environment are reduced and eliminated. EPA also provides technical assistance and training to states and tribes on how to conduct cleanups and improve the efficiency of state programs. The president’s budget request proposes to decrease funding for LUST programs because “states could elect to maintain core program work with state resources rather than federal.” With the requested LUST funding, EPA would focus “on cleaning up the highest priority sites.”

Counties supports full funding for the LUST program to be used for its intended purpose of remediating and preventing further contamination caused by underground storage tanks.

Brownfields Programs FY 2021 REQUEST: $161.4 MILLION | $43.6 MILLION DECREASE FROM FY 2020 Brownfields programs provide funding to clean up abandoned or under-utilized industrial and commercial properties, which are contaminated (or are perceived to be contaminated) due to past practices. Funding for the Brownfields program comes from a wide range of divisions within the EPA, the request listed above aggregates these various requests into a single amount. The president’s budget request proposes to decrease funding for Brownfields programs as part of its commitment “toeliminate or substantially reduce Federal investment in State environmental activities that go beyond EPA’s statutory requirements.” The request states that proposed funding for Brownfields would “allow EPA to make investments in communities so they can advance environmental health, economic growth and job creation.”

Many brownfield sites remain underutilized because no funds are available either to assess the presence and extent of contamination, or to clean up environmental hazards. Counties support federal resources as essential for assessment and remediation, as well as to provide incentives for private investment.

28 | NACo Analysis | President’s Budget Request FY 2021 Environmental Programs & Management FY 2021 REQUEST: $2.2 BILLION | $427.1 MILLION DECREASE FROM FY 2020 The president’s budget proposes the elimination of certain programs “not essential to EPA’s core mission” or that “can be implemented by the private sector” including: • ENERGY STAR and Voluntary Climate Programs (funded at $66 million in FY 2020): This longstanding voluntary certification program aims to help businesses and individuals save money and protect the environment through improved energy efficiency. The budget proposes to authorize the EPA to administer the ENERGY STAR program through the collection of user fees and proposes to eliminate funding for several smaller voluntary partnership programs related to energy and climate change. Counties support federal funding and other incentives On behalf of NACo, Grant County, Okla. Commissioner and NACo’s Central Region Representative Cindy Bobbitt testifies before the U.S. to promote nationwide energy conservation House Energy and commerce Subcommittee on Environment and efforts, including ENERGY STAR. Climate Change on the U.S. EPA’s Proposed Lead and Copper Rule • National Estuary Program (NEP) (funded at $29.8 million in FY 2020): NEP works to restore the physical, chemical, and biological integrity of estuaries and coastal watersheds. The budget states that EPA “will encourage states to continue this work and continue to implement conservation management plans.” Counties urge continued federal funding of the National Estuary Program.

Geographic Programs FY 2021 REQUEST: $330.5 MILLION | $179 MILLION DECREASE FROM FY 2020 Programs fund a variety of ecosystem protection activities within specific watersheds, including the Great Lakes, Chesapeake Bay, Puget Sound and others. The president’s budget proposes reductions in funding for activities that are “primarily local efforts” because the “responsibility for coordinating and funding these efforts generally belongs to States and local partnerships.”

Counties must be involved in all aspects of planning and management of watersheds, wetland areas, and coastal watersheds, which address public health and safety, environmental protection, and restoration issues within hydrologically defined geographic areas. Counties support expanded federal funding and increased flexibility for planning and implementation of watershed management at the local level.

National Association of Counties | February 2020 | 29 America’s Water Infrastructure Act Grants FY 2021 REQUEST: $82 MILLION | NEW PROGRAMS The America’s Water Infrastructure Act (AWIA, P.L. 115-270), enacted in 2018, authorized five new grant programs that have not yet received funding from Congress. The president’s budget proposes to fund these programs because of “the importance of modernizing the aging water infrastructure on which the American public depends every day” and to support states, municipalities, and private entities in financing high priority infrastructure investments. Grant programs receiving funding the first time include:

• Drinking Water Infrastructure Resilience and Sustainability: $2 million | New program

• Drinking Fountain Lead Testing: $10 million | New program

• Technical Assistance for Treatment Works: $7.5 million | New program

• Sewer Overflow Control Grants: $61.5 million | New program

• Water Infrastructure and Workforce Investment: $1 million | New program

Counties recognize the threat posed to the health and safety of our nation as it faces a crucial time of aging and crumbling water and wastewater infrastructure and an increased risk for both natural and human-made disasters. Counties call for a reliable, long-term, and substantially increased federal investment in water infrastructure, watershed protection and the protection of water resources and facilities from physical and chemical security threats.

U.S. DEPARTMENT OF ENERGY (DOE) FY 2021 REQUEST: $35.4 BILLION | $3.1 BILLION DECREASE FROM FY 2020 DOE advances U.S. national security and economic growth through transformative science and technology innovations that promote affordable and reliable energy through market solutions and meet U.S. nuclear security and environmental clean-up challenges. The Administration proposes the elimination of DOE programs it believes are “costly, wasteful, or duplicative” or better carried about by the private sector. This includes a proposed elimination of the Western Area Power Administration’s borrowing authority for emergency funds for constructing and/ or funding projects delivering power from renewable energy resources. According to the president’s budget request, repealing this authority would save an estimated $715 million in FY 2021 and encourage “a On behalf of NACo, Montgomery County, Md. Environmental more efficient allocation of economic resources and Protection Director Adam Ortiz offers congressional testimony mitigates unnecessary risk to taxpayers.” on the county role in recycling.

30 | NACo Analysis | President’s Budget Request FY 2021 Energy Efficiency and Renewable Energy (EERE) FY 2021 REQUEST: $719.6 MILLION | $2.1 BILLION DECREASE FROM FY 2020 EERE invests in research and development (R&D) addressing the nation’s energy and environmental challenges. The president’s budget proposes significant cuts to EERE, suggesting that the private sector has the “primary role in taking risks to finance the deployment of commercially viable projects” and the federal government’s “best use of taxpayer funding” is in earlier stage R&D. The requested decrease includes proposals to eliminate EERE programs including: • Weatherization and Intergovernmental Programs (funded at $357 million in FY 2020) • Loan and Loan Guarantee Programs (funded at $205 million in FY 2020)

Counties support federal funding and other incentives to promote research, explore the interrelationships among energy, capital, labor, and materials and the technological problems of energy systems.

Resilient Distribution Systems (RDS) FY 2021 REQUEST: $18 MILLION | $27 MILLION DECREASE FROM FY 2020 The RDS program focuses on addressing the challenges facing the electric power grid by developing innovative technologies, tools and techniques to modernize the distribution portion of the electric grid. The requested decrease “is primarily due to transitioning core capabilities of the DOE-developed Advanced Distribution Management System (ADMS) platform to industry for further development in response to industry needs and because the Coordinated Management of Microgrids and Networked Distributed Energy Resources (COMMANDER) National Testbed Laboratory was fully funded in FY 2020.”

U.S. ARMY CORPS OF ENGINEERS FY 2021 REQUEST: $6 BILLION | $1.7 BILLION DECREASE FROM FY 2020 The Army Corps of Engineers civil works program (Corps) develops, manages, restores, and protects water resources primarily through the construction, operation and maintenance, and study of water-related infrastructure projects. The request “focuses federal investment where it is most warranted... to address the most significant risks to public safety or to provide a high economic or environmental return to the Nation.” The request proposes to “eliminate funding for projects that are better suited to be carried out by States and local communities” and “gives priority to operating and maintaining existing water resources infrastructure and improving its reliability” rather than proposing to fund new construction projects.

Counties support preserving and maintaining current federal law that provides for federal participation through the Corps in a long-standing partnership with state and local governments for funding, implementing, and maintaining essential and environmentally sound navigation, harbor, beach management, flow control, coastal and aquatic ecosystem restoration and protection, and environmental improvement projects across this nation.

Funding for States and Local Communities to Accelerate Water Resources Projects FY 2021 REQUEST: $250 MILLION | NEW PROGRAM The budget proposes $250 million for an innovative program under which the Corps would transfer appropriated funds to non-federal sponsors that decide to construct a project on their own. The administration argues this would “accelerate the construction of more infrastructure projects and create efficiencies in their delivery.”

National Association of Counties | February 2020 | 31 Nick Macchione, Director of the San Diego, Calif. Health and Human Services Agency speaks during the Healthy Counties Advisory Board Meeting at the 2019 NACo Annual conference Health

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS) FY 2021 REQUEST: $94.5 BILLION | $400 MILLION DECREASE FROM FY 2020 County governments invest more than $83 billion annually in community health services and systems. Through 750 behavioral health authorities and community providers, county governments plan and operate community- based prevention and treatment services for persons with mental illness and substance use conditions. Counties also support 843 hospitals that provide clinical services, cancer and cardiac care, and emergency and trauma care. By supporting approximately 758 long-term care facilities, counties promote quality of life and wellness for the elderly.

Source: Politico Pro

32 | NACo Analysis | President’s Budget Request FY 2021 Centers for Medicare and Medicaid Services (CMS) FY 2021 REQUEST: $897.8 BILLION | $60.1 BILLION INCREASE FROM FY 2020 CMS funds Medicare, Medicaid, the Children’s Health Insurance Program (CHIP), the Center for Medicare and Medicaid Innovation (Innovation Center), other health insurance programs, program integrity efforts and operating costs. The president’s budget proposes reforms to “improve stewardship of taxpayer dollars” by strengthening CMS’ “ability to address weaknesses in provider screening, enrollment, and identification, as well as beneficiary eligibility determinations in Medicaid.” Additionally, requested investments in the Health Care Fraud and Abuse Control program would “provide the resources and tools necessary to combat waste, fraud, and abuse and to promote high-quality and efficient healthcare.”

Medicaid FY 2021 REQUEST: $453 BILLION | $31.6 BILLION INCREASE FROM FY 2020 | $920 BILLION DECREASE OVER TEN YEARS Counties support 843 hospitals, 758 long-term care facilities, and 750 behavioral health authorities that serve Medicaid patients, therefore receiving reimbursement for care that would otherwise be uncompensated. Most states require counties to provide some level of health care to low-income, uninsured or underinsured adults, and the Medicaid program helps counties meet these obligations. Commissioner Nancy Sharpe from Arapahoe County, Colo. and Sheriff Jerry Clayton from Washtenaw County, Mich. discuss The president’s budget proposes several policies the work of NACo’s joint task force with the National Sheriff’s Association (NSA) to address the Medicaid Inmate Exclusion that would decrease Medicaid spending over time, Policy (MIEP) during the 2019 Annual Conference. including: • A $193 billion decrease over ten years from provisions to “Modernize Medicaid and the Children’s Health Insurance Program (CHIP)” and “increase state flexibility in administering the Medicaid program through reform efforts” such as: – Modifying state and local financing sources for Medicaid through the option of block grants and per capita caps. – Increasing supplemental payment oversight. – Changing eligibility requirements to include savings and asset tests. – Standardizing work requirements for “able-bodied, working-age individuals” (ABAWDs) across all federal assistance programs. • A $32.4 billion decrease over ten years from allowing Medicaid Disproportionate Share Hospital (DSH) payments to expire in May 2020.

Counties oppose any efforts to cap the federal funding contribution to Medicaid, as such caps would eventually shift costs to counties, placing further strain on our capacity to provide health care services. Additionally, Counties believe that the intergovernmental partnership envisioned in the Medicaid statute should be strengthened and that DSH payments should not be phased out or down until health insurance coverage expansion and other delivery system reforms are fully implemented and the effects on DSH payments can be accurately assessed.

National Association of Counties | February 2020 | 33 The budget proposes to also allow increases in Medicaid spending through important reforms that would benefit counties: • A $5.4 billion increase over ten years from modifying the Institutes for Mental Disease (IMD) exclusion to allow states to provide inpatient mental health services to Medicaid beneficiaries with serious mental illness (SMI), as part of a “comprehensive strategy that includes improvements to community-based treatment for individuals in need of mental health services.” • Proposed legislative changes to prohibit states from terminating CHIP coverage for inmates and prohibit states from terminating Medicaid coverage for the six months that the inmate is in custody, which would allow a more equitable distribution of costs for health care services between counties and the federal government.

Counties urge federal legislation that amends federal law to prohibit states from terminating eligibility for individuals who are inmates of public institutions or residents of Institutes for Mental Disease (IMF) based solely on their status as inmates or residents and requires the federal Medicaid program to contribute the federal Medicaid match for health and mental health care that is provided while a pre-adjudicated detainee is actually incarcerated.

Interdepartmental HIV Initiative FY 2021 REQUEST: $716 MILLION | $425 MILLION INCREASE FROM FY 2020 The president’s budget request for FY 2021 includes the second of a multi-year initiative to eliminate new HIV infections in America, including: • $371 million for the Centers for Disease Control (CDC) to reduce new HIV infections • $302 million for Health resources and Services Administration (HRSA) to deliver HIV care. through the Ryan White HIV/AIDS Program, supply testing, evaluation, prescription of PreP, and fund associated medical costs through the Health Centers program. • $27 million to the Indian Health Service (IHS) to tackle the epidemic in American Indian and Alaska Native communities. • $16 million for the National Institutes of Health (NIH) for evaluation activities to identify effective interventions to treat and prevent HIV.

2015 HIV PREVALENCE RATE - (PER 100,000)

Explorer.NACo.org 65.1 96.9 148.3 259.3

34 | NACo Analysis | President’s Budget Request FY 2021 Centers for Disease Control and Prevention (CDC) FY 2021 REQUEST: $7 BILLION | $912 MILLION DECREASE FROM FY 2020 CDC-funded programs support public health preparedness and chronic disease prevention and health promotion programs that target the prevention of cancer, heart disease and diabetes. The president’s budget request proposes to decrease funding for CDC in order to “re-focus the CDC on its core mission of preventing and controlling infectious diseases and other emerging public health issues, such as opioids,” supporting “funding to protect Americans from infectious and chronic diseases, end the HIV epidemic, promote global health security, and advance data modernization efforts to ensure the evidence CDC collects and generates is accurate, timely, and can be used effectively and efficiently.”

Local public health departments, two-thirds of which are county-based, receive approximately 25 percent of their funding from the federal government, primarily through the CDC. Counties support an ongoing enhanced focus on disease and injury prevention and health promotion is a way to improve the health of our communities and to reduce health care costs. Investing in wellness and prevention across all communities will result in better health outcomes, increased productivity and reduce costs associated with chronic diseases.

Prevention and Public Health Fund (PPHF) FY 2021 REQUEST: $894 MILLION | $39.7 MILLION INCREASE FROM FY 2020 PPHF is the nation’s first mandatory funding stream dedicated to improving our nation’s public health system. By law, PPHF must be used to provide for expanded and sustained national investment in prevention and public health programs to improve health and help restrain the rate of growth in private and public health care costs. The president’s budget proposes an increase for PPHF funding to support priority programs within CDC such as Immunization and Respiratory Diseases, Chronic Disease and Health Promotion and Public Health and Scientific Services.

Counties strongly support the PPHF, which directly supports many local public health programs.

Chronic Disease and Health Promotion FY 2021 REQUEST: $813 MILLION | $427 MILLION DECREASE FROM FY 2020 The president’s budget request proposes to consolidate CDC’s primary chronic disease prevention activities (tobacco, diabetes, heart disease and stroke, nutrition and physical activity, and arthritis) into a single, $350 million block grant to states (“America’s Health Block Grant”). Heart disease, cancer, and diabetes are the leading causes of death and disability in the United States. The budget states that “these chronic diseases all share common risk factors such as tobacco use, poor nutrition, and lack of physical activity, so consolidating funding for these prevention activities can help magnify the public health impact of these funds” and argues this would give states “flexibility to address the most pressing chronic disease issues within their jurisdiction.” Additionally, the president’s budget request proposes $337 million for Cancer Control and Prevention (a $43 million decrease from FY 2020) to consolidate activities focused on preventing specific types of cancer (prostate, skin, ovarian, and colorectal) to “allow states to address the shared risk factors for these cancers in a more comprehensive manner.” Other funding in the request would continue to support Safe Motherhood and Infant Health, School Health and Oral Health programs.

National Association of Counties | February 2020 | 35 Health Resources and Services Administration (HRSA) FY 2021 REQUEST: $ 11.2 BILLION | $705 MILLION DECREASE FROM FY 2020 HRSA works to enhance the health and well-being of Americans by providing effective health and human services as the principal federal agency charged with increasing access to effective and efficient basic health care for those individuals and families who are medically underserved due to barriers they face in obtaining appropriate and quality care. The president’s budget request proposes to decrease funding for healthcare workforce programs, but “provides investments to protect the health and well-being of the American people, while accelerating efforts in the second year of the HHS-wide initiative to end the HIV Epidemic, improving maternal health, transforming rural health in America, and reforming the organ transplantation system.”

Counties support ongoing system reform that focuses on improving access to and delivery of quality health services for all.

Community Health Centers FY 2021 REQUEST: $5.7 BILLION | $102 MILLION INCREASE FROM FY 2020 HRSA funded health centers deliver comprehensive, culturally competent, high-quality health care services in areas with limited access to affordable health care. The budget proposes an increase in funding to provide 500 additional health centers with necessary resources for prevention and treatment services to people at high risk for HIV transmission.

Health Workforce Programs FY 2021 REQUEST: $826 MILLION | $824 MILLION DECREASE FROM FY 2020 The president’s budget request proposes the elimination of 14 health professions training programs that use federal funds to help individuals enter well-compensated professions but “do not require service commitments in underserved areas.” The president’s budget request instead proposes to support healthcare workforce programs require service in underserved areas in exchange for scholarships and loan repayments. This includes the National Health Service Corps and the Behavioral Health Workforce Development Programs, for which the budget proposes level funding with FY 2020 ($430 million and $139 million, respectively).

Counties support initiatives and programs to recruit, train, license and retain health professionals on an expedited basis. Funding for existing education and training programs should be increased and targeted towards initiatives to expand and diversify the health workforce.

Maternal and Child Health (MCH) Block Grant FY 2021 REQUEST: $761 MILLION | $74 MILLION INCREASE FROM FY 2020 The MCH Block Grant program provides significant funding improve access to and the quality of health care for mothers, children and their families. States and territories to use Block Grant funds to enhance and expand public health services as a necessary foundation for efforts to promote maternal health, address maternal morbidity and severe maternal Health Resources and Services Administration mortality, and improve infant and child health outcomes. The president’s budget proposes to increase funding within MCH to compensate for other proposed program eliminations within HRSA, such as the Sickle Cell Disease Treatment Demonstration, Autism and Other Developmental Disabilities, Heritable Disorders in Newborns and Children, and Emergency Medical Services for Children.

36 | NACo Analysis | President’s Budget Request FY 2021 Federal Office of Rural Health Policy FY 2021 REQUEST: $247 MILLION | $71 MILLION DECREASE FROM FY 2020 Federal Office of Rural Health Policy grants improve rural area service delivery by strengthening health networks and encouraging collaboration among rural providers and supports critical rural health activities and services to support the well-being of the Americans living in rural communities. The president’s budget request proposes the elimination of Rural Hospital Flexibility Grants (funded at $54 million in FY 2020) the Rural Health Policy Development Program (funded at $5 million in FY 2020) and State Offices of Rural Health (funded at $13 million in FY 2020) because these programs do not “provide direct health care services.” The budget instead proposes a $10 million increase to an important county program, the Rural Health Services Outreach grants, “to help to expand the delivery of health care services to include new and enhanced health care services in rural communities.” It also proposes level funding for the Rural Communities Opioid Response Program (funded at $110 million in FY 2020) to “strengthen infrastructure and capacity within rural communities at high risk for substance abuse disorders.” Additionally, the budget includes proposals that would: • “Expand access to telemedicine services by offering increased flexibility to providers who serve predominantly rural or vulnerable patient populations.” • Modify payments to rural Health Clinics to ensure that Medicare beneficiaries continue to benefit from primary care services in their communities. • Address the trend of rural hospital closures by allowing “critical access hospitals to voluntarily convert to rural standalone emergency hospitals

and remove the requirement to maintain Sen. Capito of West Virgina speaks at NACo-Appalachian Regional inpatient beds.” Commission Capstone Event on Opioids in Appalacia

Counties recognize the vital role that healthcare plays in rural America and support strengthening the healthcare delivery system in rural America.

National Association of Counties | February 2020 | 37 Substance Abuse and Mental Health Services Administration (SAMHSA) FY 2021 REQUEST: $5.7 BILLION | $142 MILLION DECREASE FROM FY 2020 SAMHSA is the lead agency in the Administration’s efforts to combat substance abuse issues, including opioids, stimulants, and other substances. Our nation’s 750 county behavioral health authorities receive block grant funding from SAMHSA to plan and operate community-based services for people with mental illnesses and substance abuse conditions. The president’s budget request proposes to decrease SAMHSA funding by eliminating programs that are “duplicative” and for which “other funding sources” are available. The $5.7 billion in requested funding would support programs that prevent and treat opioid use disorder, methamphetamine use disorder, address serious mental illness, prevent suicide, and support the mental health needs of students. As part of these efforts the request for FY 2021 includes: Substance Abuse Prevention and Treatment Block Grant: $1.9 billion | level with FY 2020 Community Mental Health Services Block Grant: $757.6 million | $35 million increase from FY 2020 Drug Free Communities (DFC) Program: $100 million | level with FY 2020

Counties represent a major cornerstone for behavioral healthcare services in the United States. We plan, operate and finance public community-based services for persons with mental illnesses, substance use conditions or intellectual/ developmental disabilities and support full funding and reauthorization for SAMHSA.

State Opioid Response Grants FY 2021 REQUEST: $1.6 BILLION | $85 MILLION INCREASE FROM FY 2020 This formula grant program aims to address the opioid crisis by increasing access to medication-assisted treatment, reducing unmet treatment need, and reducing opioid overdose related deaths through the provision of prevention, treatment and recovery activities for opioid use disorder (OUD). The president’s budget requests increased funding to “to expand the use of State Opioid Response grants to include methamphetamine and other stimulants, giving states and tribes flexibility to address their unique community needs.”

Over the last decade, usage of devastating and highly addictive drugs has increased and spread across the country, especially in rural counties, most notably methamphetamine and opioids. Counties support appropriate funding for research, enforcement, treatment and education of users and their families dealing with these epidemics and urge Congress and the administration to commit more resources to fight these harmful epidemics.

Certified Community Behavioral Health Clinics (CCBHC) Expansion Grants FY 2021 REQUEST: $225 MILLION| $25 MILLION INCREASE FROM FY 2020 Community Behavioral Health Clinics (CCBHCs) provide a comprehensive, coordinated range of evidence- based behavioral health services certified by the state to meet six key aspects of improved care: staffing, organization authority, care coordination, scope of services, quality and other reports, and availability and accessibility of services. Under the Expansion demonstration, certified clinics may receive Medicaid payment through a daily or monthly prospective payment system rate that is clinic-specific and reimburses the expected cost of demonstration services. The president’s budget proposes an extension and increased funding for this program in order to “improve community mental health services for the eight states currently participating in the demonstration.”

38 | NACo Analysis | President’s Budget Request FY 2021 Human Services & Education In addition to health services, counties play a pivotal role when it comes to providing our residents with critical human services. Counties provide and administer federal, state and local systems of services to break cycles of poverty. In fact, counties invest $58 billion annually in federal, state and local funds in human services while serving as the front-line social safety net.

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS) FY 2021 REQUEST: $94.5 BILLION | $400 MILLION DECREASE FROM FY 2020

Administration for Children and Families (ACF) FY 2021 REQUEST: $55 BILLION | $6.2 BILLION DECREASE FROM FY 2020 The Administration for Children and Families (ACF) is a division of the Department of Health & Human Services that works to promote the economic and social well-being of children, families, individuals and communities, making it a key federal partner for counties tasked with the administration of federal human services programs. The president’s budget request proposes decreases and eliminations of programs across ACF, aimed at “reining in entitlement spending” to support the goal of reducing the federal deficit. The president’s budget request for ACF includes proposals “to help low-income families end dependency on government benefits and promote the principle that gainful employment is the best pathway to financial self-sufficiency and family well-being.”

National Association of Counties | February 2020 | 39 Temporary Assistance for Needy Families (TANF) Block Grant & Contingency Fund FY 2021 REQUEST: $15.2 BILLION | $2.1 BILLION DECREASE FROM FY 2020 | $20.1 BILLION DECREASE OVER 10 YEARS TANF aims to ensure low-income families have the resources to care for their children and reduce vulnerable families’ dependence on federal assistance by promoting job preparation, work and marriage. TANF provides flexibility to states to use program funds for cash assistance and non-cash assistance programs such as child care, job training and work supports. TANF’s authorization expired in 2010 after which the program has received a series of short-term extensions. The president’s budget proposes to reauthorize the program through 2025 with a package of policy proposals to reduce TANF spending in FY 2021 and over the next decade, arguing that “many states have lost sight of TANF’s purpose, both in its focus on work and in targeting funds to the truly needy” and that, in spite of a growing economy, “our safety net programs are failing to move low-income families from welfare to sustained independence.” These proposals include: • A 10 percent reduction in funding, which the budget suggests is equivalent to “the portion that States may transfer to the Social Services Block Grant (SSBG.)” The president’s budget request proposes the elimination of SSBG and suggests that “without separate funding for the SSBG program, it is unlikely that states will opt to transfer that portion of the TANF grant to SSBG.” • Simplifying TANF’s work participation rate (WPR) by replacing it with a new universal work requirement for public assistance programs in which able-bodied, working-age individuals, aged 18-65 years old must find employment or participate in individualized work activities for a minimum of 20 hours per week unless they fall into an exempt category or have an individual or geographic hardship. This proposal “improves the consistency among work requirements in TANF, SNAP, and Medicaid.” • Directing states to spend 30 percent of all TANF funds on activities that “directly promote work” as “part of the increased focus on employment.” • Providing $100 million in annual funding for new state “Opportunity and Economic Mobility Demonstrations” to streamline funding from multiple public assistance programs and provide services that “build the evidence base of best practices for helping low-income individuals achieve self-sufficiency.” With this funding states would receive support for startup costs, rigorous evaluations and technical assistance, and be held accountable for achieving targeted outcomes that focus on fostering employment, reducing welfare dependency and promoting child and family well-being. COUNTIES CONTRIBUTE TO TANF IN 10 STATES • Eliminating the TANF contingency fund (funded at $608 million in FY 2020), which is designed to Although TANF is an entitlement program disbursed to states, county agencies administer TANF benefits in ten states: supplement TANF funding to states facingCalifornia, unforeseenColorado, Minnesota, developments New Jersey, New York, Northor economic Carolina, North Dakota,hardships. Ohio, Virginia The and Wisconsin. Counties in these states contribute significant local funds to administrative and supplemental costs of running president’s budget request suggeststhe the program, contingency which cover 51 fund percent should of our nation’s be TANF eliminated recipients. because it “does not provide well-targeted counter-cyclical funding to states.”

Counties administer TANF benefits in ten states with 51 percent of the total participant population and support long-term reauthorization of TANF as well as an increase in funding for the program. Counties also support maintaining the TANF Contingency Fund. COUNTY ADMINISTERED

NON-COUNTY ADMINISTERED

16 40 | NACo Analysis | President’s Budget Request FY 2021 Social Services Block Grant (SSBG) FY 2021 REQUEST: ELIMINATED | FUNDED AT $1.7 BILLION IN FY 2020 SSBG funds state activities that serve vulnerable populations, including adults and children at risk of abuse and neglect. The president’s budget request proposes the elimination of SSBG because it “lacks strong performance measures, is not well targeted and is not a core function of the federal government” and does not “effectively help low-income families move to independence through paid employment.”

Ten states pass funds directly to counties, though counties in other states can access SSBG funds as well. Counties utilize SSBG s for a variety of programs, such as adult protection, child care for children with special needs, child welfare, and child abuse prevention. In some cases, such as adult protection, this is the only source of fund for these services. strongly supports full funding for SSBG. Counties support restoring funding for this program to the highest level possible.

Low-Income Housing Energy Assistance Program (LIHEAP) FY 2021 REQUEST: ELIMINATED | FUNDED AT $3.7 BILLION IN FY 2020 LIHEAP provides federally funded assistance in managing costs associated with home energy bills, energy crises, and weatherization and energy-related minor home repairs. Grantees are allowed flexibility in determining payment levels and types of payments, including direct cash payments, payments to vendors on behalf of eligible households, and/or energy vouchers. The president’s budget proposes the elimination of LIHEAP, citing “program integrity concerns” and suggesting that the program is “no longer a necessity as states have adopted their own policies to protect constituents against energy concerns.”

Counties recognize the need for a comprehensive energy assistance, weatherization, and conservation program with sufficient federal funding and incentives so that the cost burden does not fall on county government.

Community Services Block Grant (CSBG) FY 2021 REQUEST: ELIMINATED | FUNDED AT $740 MILLION IN FY 2020 CSBG distributes funds to local community agencies to support activities that mitigate the root causes of poverty. Services may address employment, education, housing assistance, nutrition, energy, emergency services, health, and substance abuse. The president’s budget request proposes the elimination of CSBG because “in a constrained budget environment, difficult funding decisions were made to ensure that federal funds are being spent as effectively as possible” and the formula for CSBG is “not tied directly to the local agency performance,” which is a priority for this Administration. The request also suggests that CSBG funding is “often duplicative.”

Counties strongly support full funding for CSBG, as it helps us serve some of our most vulnerable populations, including elderly citizens, people with disabilities and children. Through its boards involving the public sector, the private sector, and the community, CSBG represents a unique and effective partnership with counties, states, federal government and community organizations.

National Association of Counties | February 2020 | 41 Child Care and Development Fund (CCDF) FY 2021 REQUEST: $10 BILLION | $1.3 BILLION INCREASE FROM FY 2020 The Child Care and Development Fund (CCDF) is the primary source of federal childcare assistance for low- income families. and includes the discretionary Child Care and Development Block Grant (CCDBG) and a mandatory the Child Care Entitlement to States (CCE). The president’s budget request proposes level funding for CCDBG ($5.8 billion in FY 2020) and $4.5 billion for CCE, an increase of nearly $1.3 billion from FY 2020. The proposed increase to CCE represents a one-time investment of $1 billion in a competitive grant to “build the supply of care and stimulate employer investment in child care…to help families access and afford the care they need.” The increase also includes $220 million annually over ten years to maintain federal childcare funding in light of proposed cuts to the Social Services Block Grant and Temporary Assistance for Needy Families, both of which states utilize to support child care services. The budget proposes these increases because “child care is an investment in both present and future generations of the workforce. However, it is also one of the biggest expenses for families and can be a barrier to work.”

Counties in several states are responsible for administering CCDF. We support increased funding for the program to meet the needs of eligible families. High-quality child care services are needed to ensure that we meet the developmental needs of children.

Head Start/Early Head Start FY 2021 REQUEST: $10.6 BILLION | LEVEL WITH FY 2020 Head Start promotes school readiness for infants and children up to five years of age from low-income families by enhancing cognitive, social and emotional development. The president’s budget request proposes to maintain funding at FY 2020 levels for Head Start, including $7.3 billion for Head Start, $3 billion for Early Head Start (which serves pregnant women and children from birth to three years of age) and $370 million for additional program supports. According to the president’s budget request, “this funding supports early learning programs that meet the highest standards of quality for preschoolers, infants, and toddlers.”

Head Start delivers programming to children in every state and territory through over 1,700 local agencies, many of which are county-run. Counties support increased investments in Head Start to ensure that needed educational, nutritional, and social services are available to disadvantaged pre-school children, including children with disabilities. Counties believe that Early Head Start, in particular, deserves stronger support so that infants, toddlers and their caregivers can take advantage of the program’s continuum of services at an earlier age.

Preschool Development Grants (PDG) FY 2021 REQUEST: ELIMINATED | FUNDED AT $275 MILLION IN FY 2020 The PDG program was created in 2014 to build state and local capacity to implement preschool for four-year-old children from low- and moderate-income families. Grantees have the option to implement services through a mixed-delivery system of providers including schools, licensed child care centers, Head Start, or other community- based organizations. The president’s budget request does not offer a justification for its proposed elimination of this program.

Counties support legislation to increase investments in high quality early childhood development, as well as strengthened coordination of state and federal preschool programs with county agencies that provide related services to children and their families.

42 | NACo Analysis | President’s Budget Request FY 2021 Support for the Family First Prevention Services Act (FFPSA) FY 2021 REQUEST: $268 MILLION | $1.7 BILLION OVER 10 YEARS | NEW PROGRAM The president’s budget request includes proposals, worth $1.7 billion over ten years, that will help jurisdictions implement new requirements for the child welfare system enacted under the Family First Prevention Services Act (FFPSA, PL 115-23). Changes under FFPSA are aimed at reducing congregate care, preventing child abuse and neglect and supporting family preservation. In order to qualify for federal reimbursement for prevention services, states and jurisdictions must align them with evidence-based programs included in a new federal Clearinghouse. The budget proposes to allow programs aligned with California’s existing evidence-based child welfare clearinghouse and the national Home Visiting Evidence of Effectiveness project to also be eligible for reimbursement, subject to ACF review and approval. Additionally, the budget request proposes to change current law to allow children in Title IV-E foster care to have Medicaid coverage when placed in a Qualified Residential Treatment Program.

Counties are fully or partially responsible for administering the child welfare system in 12 states.

U.S. DEPARTMENT OF AGRICULTURE FY 2021 REQUEST: $21.8 BILLION | $1.9 BILLION DECREASE FROM FY 2020

Food & Nutrition Service (FNS) FY 2021 REQUEST: $84.4 BILLION | $13.9 BILLION DECREASE FROM FY 2020 FNS works to end hunger and obesity through the administration of 15 federal nutrition assistance programs, making it an important partner for counties in human service delivery. The budget’s proposed decrease to FNS largely reflects proposed reductions in the Supplemental Nutrition Assistance Program (SNAP)

Supplemental Nutrition Assistance Program (SNAP) FY 2021 REQUEST: $52.5 BILLION | $15.3 BILLION DECREASE FROM FY 2020 | $181.9 BILLION DECREASE OVER 10 YEARS

SNAP provides funding for low income families and 2017 SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP) - PROFILES individuals to purchase groceries, supporting access to enough healthy food. SNAP is critical to struggling families and has proven to be one of the most countercyclical federal programs because benefits can reach families quickly during economic downturns as well as natural disasters. The president’s budget proposes significant changes to SNAP to address the fact that “despite significant economic improvement and a strong job market, participation has not yet declined to pre-recession levels, and too many people are still missing the opportunity to move from Explorer.NACo.org $7.0K $1.4M $3.5M $7.2M $16.2M $2.9B dependence to self-sufficiency.” These provisions would reduce SNAP benefits by $15.3 billion in FY 2021 and $181.9 billion over the next decade and include: • Replacing about half of the grocery credit families receive via SNAP with mailed packages that include non-perishable and canned foods. The budget suggests this “America’s Harvest Box” program represents

National Association of Counties | February 2020 | 43 a “cost-effective approach” to ensuring SNAP households “receive nutritious food while supporting agriculture,” and would task states with designing and implementing the food box delivery system using existing infrastructure. • Applying the proposed new universal work requirement for able-bodied adult participants ages 18 to 65 to SNAP. According to the president’s budget request, “this would help more people get off the sidelines of this booming economy and onto the path toward self-sufficiency.” • Establishing program integrity initiatives that “would increase monitoring and oversight, maximize the use of data sharing, and increase administrative efficiencies” to improve eligibility determinations for SNAP and reduce duplicate participation across states.

Counties in 10 states administer SNAP administration, and we support SNAP’s existing funding structure. Counties oppose arbitrary and counterproductive work and participation requirements in SNAP and support a strong county role in mutually negotiated outcome measures in which states are judged by their progress toward achieving agreed upon goals. NACo supports greater flexibility in the SNAP work requirements in order to allow counties and states to meet the individual needs of their caseloads.

Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) FY 2021 REQUEST: $5.5 BILLION | $549 MILLION DECREASE FROM FY 2020 The WIC program aids low-income pregnant, postpartum and breastfeeding women, as well as infants and children up to age five, who are at nutritional risk by providing food to supplement diets, information on healthy eating and referrals to health care. The president’s budget request includes a $1.2 billion rescission of unspent food funds from the program, which it estimates is enough funding to serve all projected participants in 2021.

WIC is administered by the states but operates out of 1,900 local agencies in 10,000 clinic sites across the country, many of which are county-run. Counties support full funding for WIC and other early childhood and maternal health programs that improve birth outcomes and child health and development, fostering long-term educational attainment, employment and self-sufficiency.

U.S. DEPARTMENT OF EDUCATION FY 2021 REQUEST: $66.6 BILLION | $5.6 BILLION DECREASE FROM FY 2020 Local education systems affect all segments of the community and are critical to the success of many programs operated by counties. Regardless of the specific funding arrangements between counties and school districts, they share a common tax base and are both faced with limited resources. The president’s budget request proposes significant decreases to the Department of Education in order to “transform the Federal role in education,” giving states and school districts “the flexibility to better meet the needs of their students and families” by “eliminating federal Baltimore County, Md. Executive Johnny Olszewski intrusion into state and local education systems.” speaks to middle school students.

44 | NACo Analysis | President’s Budget Request FY 2021 Elementary and Secondary Education Act (ESEA) Programs FY 2021 REQUEST: $19.4 BILLION | $4.7 BILLION DECREASE FROM FY 2020 The president’s budget request proposes to consolidate 29 existing formula and competitive grant programs into a single, $19.4 billion formula grant called the “Elementary and Secondary Education for the Disadvantaged (ESED) Block Grant.” Funds would be allocated to districts through the Title I Grants to Local Educational Agencies (LEAs) formula. The budget suggests that this new funding structure would “restore greater State and local control over education while maintaining key accountability and reporting requirements aimed at protecting students, supporting meaningful school improvement efforts, and giving parents the information they need to choose a high-quality education for their children.” ESED funds “could be used to support any of the activities authorized by the consolidated grant programs.”

Counties support full funding for ESEA and the current method of disbursement of funds to LEAs.

Individuals with Disabilities in Education Act (IDEA) Grants to States FY 2021 REQUEST: $12.9 BILLION | $100 MILLION INCREASE FROM FY 2020 IDEA programs assist states and school districts in meeting the federal mandate to provide any child identified as having a disability with access to a free appropriate public education in the least restrictive environment. The president’s budget request proposes to increase IDEA grants to states to “provide more resources for states to provide special education and related services for over seven million students with disabilities.”

Counties support the goal of available free public education to all children with disabilities, including full funding for IDEA so that states and Local Educational Agencies can meet the law’s requirements.

Career and Technical Education (CTE) State Grants FY 2021 REQUEST: $2 BILLION | $680 MILLION INCREASE FROM FY 2020 CTE grants assist states with expanding and improving career and technical education in high schools, technical schools, and community colleges. The president’s budget requests a significant increase to CTE programs in order to “strengthen America’s workforce by providing access to high-quality vocational programs in every high school.”

Counties support an increased federal emphasis on the promotion of career technical programs across the secondary and post-secondary educational spectrum.

Public Service Loan Forgiveness (PLSF) FY 2021 REQUEST: ELIMINATED | FUNDED AT $1.9 BILLION IN FY 2020 This incentive program forgives the student loans of public-sector workers. The budget proposes the elimination of PLSF because it “unfairly favors some career choices over others and is complicated for borrowers to navigate.”

Counties support federally backed student loan programs, which are vital to preserving our nation’s equal educational opportunity.

National Association of Counties | February 2020 | 45 Supervisor James Gore from Sonoma County, Calif. highlights the role America’s counties play in disaster mitigation, preparedness, response and recovery during a testimony before the U.S. House Transportation and Infrastructure Committee Subcommittee on Economic Development, Public Buildings and Emergency Management. Justice and Public Safety Maintaining safe communities is one of the most important functions of county governments. Counties invest over $70 billion annually in providing justice and public safety services to our residents, working together with all levels of government to improve public safety, safely reduce jail populations, fight recidivism and combat criminal activity such as drug trafficking. Most counties are involved in almost every aspect of law enforcement and crime prevention, including policing, corrections, and judicial and legal services. Further, counties own and support the operation, construction and maintenance of 91 percent of America’s local jails, which admit 11.4 million individuals each year.

U.S. DEPARTMENT OF HOMELAND SECURITY (DHS) FY 2021 REQUEST: $49.7 BILLION | $1.4 BILLION DECREASE FROM FY 2020 Grant programs under DHS and Federal Emergency Management Agency (FEMA) help counties prepare for, respond to, and recover from both man-made and natural threats and disasters, ranging from terrorism to hurricanes and floods. These programs are of critical importance to the safety and security of counties across the country. The president’s budget request proposes to increase funding for DHS programs support “border security, immigration enforcement, cybersecurity, disaster recovery, response and preparedness, critical maritime and aviation assets, and front line personnel,” but also proposes reductions to programs that “have failed to demonstrate results” or “supplant state and local government responsibilities.” The request also includes a proposal to shift the Secret Service (funded at $2.7 billion in FY 2020) from DHS to the Department of the Treasury to aid cybercrime investigations.

46 | NACo Analysis | President’s Budget Request FY 2021 Cybersecurity and Infrastructure Security Agency (CISA) FY 2021 REQUEST: $1.75 BILLION | $250 MILLION DECREASE FROM FY 2020 CISA is charged with protecting the nation’s critical infrastructure from physical and cyber threats, requiring collaboration between both government and private sector organizations. The president’s budget request proposes a decrease in funding to several programs within CISA, suggesting that its requested funding will remain “adequate and appropriate for CISA to appropriately perform its mission requirements,” including “federal network protection, proactive cyber protection, and infrastructure security.”

Counties recognize the ever-increasing cyber threats that our nation faces from multiple sources on a daily basis. The threats are continuing to increase in sophistication and in turn requiring costly proactive measures to mitigate the potential loss of data and/or damage to our nation’s critical infrastructure.

Emergency Communications Grants Program FY 2021 REQUEST: $51.5 MILLION | $2.8 MILLION DECREASE FROM FY 2020 These grants provide capacity-building technical assistance, training, tools, and guidance to state and local government officials to ensure emergency response providers and relevant government officials can continue to communicate in the event of natural disasters, acts of terrorism, and other man-made disasters. The budget request for this program proposes to decrease funding for First Responder Emergency Medical Communications grants because “CISA prefers to spend its Emergency Communications funding on the highest risk initiatives,” noting that if emergency medical communications is a high-risk area, the Office of Emergency Communications will allocate its resources towards this initiative within its own operating budget.

Federal Emergency Management Agency (FEMA) FY 2021 REQUEST: $14.5 BILLION | $12.8 BILLION DECREASE FROM FY 2020

The Federal Emergency Management Agency (FEMA) 2018 TOTAL NUMBER OF DISASTER DECLARATIONS reduces loss of life and property and protects the Nation from all hazards by leading and supporting the Nation in a risk-based, comprehensive emergency management system. In addition to the Agency’s headquarters in Washington, D.C., FEMA has 10 permanent regional offices, three permanent area offices, and various temporary disaster-related sites that carry out the agency’s operations throughout the United States and its territories. The president’s budget proposes to decrease funding for “grant and training programs that have failed to demonstrate results, supplant State and local government responsibilities, and provide funding to maintain investments that are 2281 581 202 5 not federal responsibilities” within FEMA. 123

Counties believe that federal and state governments should recognize the first-line responsibility of county governments and the critical role that counties play in the overall national response to, and recovery from, disasters. Federal and state governments should provide direct financial and technical assistance to counties in the preparation and response to emergencies and expeditious, practical, and substantial aid to individuals, businesses, and public agencies following disasters.

National Association of Counties | February 2020 | 47 Hazard Preparedness Grants The president’s budget request proposes to decrease funding for several hazard preparedness grant programs, stating that “hazard preparedness and terrorism preparedness are a shared responsibility among Federal, State, and local governments” and “with the need for across-the-board reductions to Federal funding, the Federal Government can no longer justify fully funding these sustainment and operating costs, which are the primary responsibilities of State and local governments.” The proposed reductions will “allow FEMA to focus available resources on implementing higher priority Department of Homeland Security and FEMA missions and encourage grant recipients to share responsibility for the cost of preparedness activities in their own budgets.” The programs with proposed reductions include: • State Homeland Security Grant Program (SHSGP) FY 2021 request: $330.9 million | $228 million decrease from FY 2020 The SHSGP supports the implementation of state homeland security strategies to address identified planning, organization, equipment, training and exercise needs to prevent, protect against, mitigate, respond to and recover from acts of terror and other catastrophic events. • Urban Area Security Initiative (UASI) FY 2021 request: $426.4 million | $238.6 million decrease from FY 2020 UASI Programs assists high-threat, high-density urban areas in efforts to build and sustain the capabilities necessary to prevent, protect against, mitigate, respond to and recover from acts of terrorism. • Emergency Management Performance Grants (EMPG) FY 2021 request: $ 279.3 million | $55.7 million decrease from FY 2020 EMPG plays an important role in the implementation of the National Preparedness System by supporting the building, sustainment and delivery of core capabilities essential to achieving the National Preparedness Goal of a secure and resilient nation.

Flood Hazard Mapping and Risk Analysis (RISK Map) Program FY 2021 REQUEST: $100 MILLION | $163 MILLION DECREASE FROM FY 2020 Flood hazard mapping is an important part of the National Flood Insurance Program (NFIP), as it is the basis of the NFIP regulations and flood insurance requirements. RISK MAP drives national actions to reduce flood risk by addressing flood hazard data update needs, supporting local government hazard mitigation planning, and providing the flood risk data needed to manage the NFIP financial exposure. The president’s budget request proposes a reduction in funding because FEMA prefers “to focus available resources on implementing higher priority DHS and FEMA missions.”

Counties support sustained funding for FEMA’s efforts to modernize flood plain mapping through digitalization.

In total, an estimated During that same time 570 COUNTIES received at In 2018, local governments period, local and state least one federal Major Disaster were impacted by governments managed Declaration, with 411 with at least 66 FEDERALLY 23,331 EMERGENCY one federal Emergency Declaration DECLARED DISASTERS EVENTS without and another 788 COUNTIES funded by recovery grants additional federal with at least one federal Disaster resource Declaration

48 | NACo Analysis | President’s Budget Request FY 2021 FEMA Disaster Relief Fund (DRF) FY 2021 REQUEST: $5.6 BILLION | $12.8 BILLION DECREASE FROM FY 2020 The DRF allows FEMA to fund authorized federal disaster support activities as well as eligible state, local, tribal and territorial actions such as providing emergency protection, rebuilding, and debris removal. The president’s budget request proposes a significant decrease to this funding that is “primarily related to Hurricane Harvey, Irma, and Maria requirements that will be funded from prior year carryover balances” and suggests remaining funding within DRF will support “new initiatives that build a prepared and resilient nation, support existing disaster operations while being ready for future catastrophic events, and invest in cross-cutting, mission- enabling capabilities.”

National Security and Resilience Grant Program (NSRG) FY 2021 REQUEST: $406.9 MILLION | NEW PROGRAM The president’s budget request for FEMA proposes the creation of a new competitive, all-hazards grant program that identifies national priorities requiring innovative solutions and investments to build preparedness capabilities and awards funding for demonstration and evaluation projects addressing emerging natural hazards and evolving terrorism threats. The key differences between the proposed program and current programs is that “FEMA will establish a set of national priorities to drive investments that address emerging natural hazard and terrorism threats, and the proposed program will be rigorously evaluated to ensure the best use of taxpayer dollars to make the Nation more prepared.”

Targeted Violence and Terrorism Prevention (TVTP) FY 2021 REQUEST: $10 MILLION | NEW PROGRAM The president’s budget request for FEMA proposes the creation of the TVTP to support activities that prevent the recruitment or radicalization of individuals to violence by interrupting those efforts, building community-level resilience and identifying the early signs of radicalization to violence and providing appropriate interventions through civic organizations, law enforcement or other entities. Funding will support state, local, tribal and territorial (SLTT) prevention efforts through community awareness training programs and grants, which will be administered under FEMA’s grant program and funding for the establishment of the TVTP Grant Program Management Office.

Grants Supporting Firefighters FY 2021 REQUEST: $688.6 MILLION | $21.4 MILLION DECREASE FROM FY 2020 Within FEMA, Assistance to Firefighter Grants (AFG) and Staffing for Adequate Fire and Emergency Response (SAFER) grants provide assistance to local fire departments. AFG funds investments that to improve the safety of firefighting personnel and members of the public, while SAFER supports staffing and deployment capabilities. The budget proposes $344.3 million for both programs, representing a $10.7 million decrease from FY 2020 for each. The budget proposes a reduction in these programs due to “a need for grant recipients to share responsibility for sustaining the cost of preparedness activities in their own budgets.” The president’s budget request suggests that the decreased funding would “have a minimal impact on accomplishing the goals of the program.”

Counties support federal efforts to increase the hiring of local firefighters through programs like DHS’ Assistance to Firefighters Grant Program and urge the federal government to fully fund this grant program.

National Association of Counties | February 2020 | 49 National Flood Insurance Program (NFIP) FY 2021 REQUEST: $5.1 BILLION | $193 MILLION INCREASE FROM FY 2020* NFIP is a federal program that enables property owners in participating communities to purchase flood insurance in exchange for the communities adopting and enforcing floodplain management requirements that reduce the future economic impact of floods on private and public structures. NFIP periodically updates its baseline model used to estimate the anticipated amount of premiums, fees, and other collections within the program. *The president’s budget increases funding for NFIP based on updates to the baseline model that project higher collections from policy holders in FY 2021.

U.S. DEPARTMENT OF JUSTICE (DOJ) FY 2021 REQUEST: $31.7 BILLION | $730 MILLION DECREASE FROM FY 2020 DOJ programs support federal law enforcement and the criminal justice priorities of state, local, and tribal law enforcement partners. The president’s budget request proposes funding decreases and eliminations of programs within DOJ that it considers “wasteful spending.” The proposal prioritizes funding for programs supporting “core federal government functions such as national security, cybersecurity, violent crime and targeted violence reduction, immigration, drug enforcement, and the opioid epidemic.”

State and Local Law Enforcement Assistance FY 2021 REQUEST: $1.5 BILLION | $300 MILLION DECREASE FROM FY 2020 These grant programs support training and technical assistance for state, local, and tribal jurisdictions to address public safety issues and build grantees’ crime-fighting capacity with a focus on promoting officer safety, reducing violent crime, and combating substance abuse. The president’s budget proposes funding decreases and eliminations of several state and local law enforcement grant programs because it “prioritizes funding for programs that address the most urgent national priorities, such as reducing violent crime and combating human trafficking. In order to achieve these investments, the budget reallocates funding from other programs to preserve fiscal responsibility.”

State Criminal Alien Assistance Program (SCAAP) FY 2021 REQUEST: ELIMINATED | FUNDED AT $244 MILLION IN FY 2020 SCAAP partially reimburses state and local governments for the cost of incarcerating undocumented immigrants convicted of certain crimes—though currently at less than 18 percent of the total expense. The president’s budget request proposes the elimination of SCAAP because it “does not require recipients to use SCAAP awards solely for the purpose of addressing the cost of detaining illegal aliens in state, local, and tribal detention facilities and cannot provide sufficient reimbursement to fully address state and local concerns.” The proposal would allow DOJ to “invest in violent crime reduction and border security initiatives that will more effectively address the public safety threats posed by criminal aliens.”

50 | NACo Analysis | President’s Budget Request FY 2021 Byrne Memorial Justice Assistance Grants (JAG) FY 2021 REQUEST: $411.7 MILLION | $135.5 MILLION DECREASE FROM FY 2020 Byrne JAG grants support a variety of local justice programs, including crime prevention, courts and corrections and victims’ services. Local and tribal governments rely on Byrne JAG funding to address critical gaps in their criminal justice systems in order to increase public safety and prevent crime. The president’s budget request proposes to decrease Byrne JAG funding primarily from the elimination of Presidential Nominating Convention Security grants, a one-time program funded at $100 million in FY 2020, suggesting that the reduction “will not have significant impact on this program’s overall performance.”

Second Chance Act (SCA) FY 2021 REQUEST: $87.5 MILLION | $2.5 MILLION DECREASE FROM FY 2020 SCA supports local programs that help formerly incarcerated individuals reintegrate into communities, including housing, educational and employment assistance, mentoring relationships, mental health services, substance abuse treatment services, and family-support services. The president’s budget request proposes a “minor” decrease for SCA, suggesting this will have “little to no impact on program performance.”

Counties supported SCA as a major priority in the recent passage of the First Step Act criminal justice legislation.

Justice and Mental Health Collaborations FY 2021 REQUEST: $33 MILLION | LEVEL WITH FY 2020 This program, formerly the Mentally Ill Offender Treatment and Crime Reduction Act, provides funding for a range of activities to reduce the number of individuals with mental illness in jails.

Counties urge Congress to increase financial support for measures that maximize the ability of counties to develop and support programs that deflect non-violent individuals experiencing behavioral health crisis into treatment driven by a complete, integrated and accessible continuum of care. We encourage federal legislative action to expedite the creation of collaborative deflection initiatives that offer immediate pathways for non-violent individuals to treatment and other services as an alternative to traditional involvement in the criminal justice system

STOP School Violence Act FY 2021 REQUEST: $150 MILLION | $75 MILLION INCREASE FROM FY 2020 The STOP School Violence Act (P.L. 115-141) was enacted in 2018 to support state and local governments with the implementation of evidence-based strategies and programs focused on improving school security. The president’s budget request proposes an increase for this program to “continue the Administration’s efforts to improve school safety and protect students.” The additional funding would allow DOJ to “better meet the demand for awards to support and implement school safety strategies, projects, and trainings.”

National Association of Counties | February 2020 | 51 Comprehensive Addiction and Recovery Act (CARA) FY 2021 REQUEST: $352 MILLION | $26 MILLION DECREASE FROM FY 2020 Although most federal assistance for state and local efforts to fight the opioid epidemic flows through HHS, DOJ funds activities to fight addiction under CARA. The president’s budget request calls for moderate reductions across CARA programs because “funding has grown rapidly” in recent years, suggesting these proposed adjustments will not interrupt any of DOJ’s current efforts to help state, local, and tribal jurisdictions combat the addiction crisis. These decreases include:

• Comprehensive Opioid, Stimulant, and Substance Abuse Program (COSSAP) ($20 million decrease from FY 2020)

• Drug Court Program ($3 million decrease from FY 2020)

• Prescription Drug Monitoring Program ($1 million decrease from FY 2020)

• Residential Substance Abuse Treatment Program ($1 million decrease from FY 2020

• Veterans Treatment Courts ($1 million decrease from FY 2020)

Juvenile Justice and Safety Programs FY 2021 REQUEST: $227.5 MILLION | $92.5 MILLION DECREASE FROM FY 2020 Juvenile Justice programs support the efforts of state, local, and tribal governments, as well as private organizations, to develop and implement effective and innovative programs that address juvenile crime and delinquency and assist children who have been victimized by crime and child abuse. The president’s budget request proposes decreased funding for Juvenile Justice programs because of “the need to fund a variety of other state, local, and tribal justice assistance priorities.” Considering these proposed reductions, DOJ would “work with its grantees to seek greater efficiencies and enhance coordination to ensure that its juvenile justice programs are operating effectively.”

Juvenile Justice Delinquency Prevention Act Programs (JJDPA) FY 2021 REQUEST: $17 MILLION | $25 MILLION DECREASE FROM FY 2020 JJDPA is the principal federal program through which the federal government sets standards for the care and custody of juveniles and provides direct funding to counties to facilitate compliance with these standards and improvement of local youth justice systems. The president’s budget request proposes decreased funding for JJDPA programs, suggesting the shortfall could be funded through other sources within DOJ.

Counties believe that JJDPA has been a major catalyst in producing positive change in the juvenile justice system and in creating preventive and interventive approaches for at-risk youth and that federal funds coming to local communities through JJDPA should be distributed through the collaborative planning process at adequate and sustained levels of support.

52 | NACo Analysis | President’s Budget Request FY 2021 Community Oriented Policing Services (COPS) Program FY 2021 REQUEST: $174 MILLION | $169 MILLION DECREASE FROM FY 2020 COPS grants support critical local law enforcement with the tools, personnel and resources necessary to protect and serve their communities. The president’s budget proposes to decrease funding for COPS by transferring and consolidating COPS program activities into the Office of Justice Programs, which already has “developed partnerships with state, local, and tribal law enforcement.” This proposal “would allow the Department to centralize and strengthen the partnerships it has with state and local law enforcement and to promote community policing not only through its hiring program, but also through the advancement of strategies for policing innovations and other innovative crime-fighting techniques.”

Counties support the community policing model, which incorporates members of the community in crime prevention and deterrence.

Office on Violence Against Women FY 2021 REQUEST: $498.5 MILLION | $4 MILLION DECREASE FROM FY 2020 The mission of OVW is to provide federal leadership in developing the nation’s capacity to reduce domestic violence, dating violence, sexual assault, and stalking through the implementation of the Violence Against Women Act (VAWA). Grant awards support state, local, and tribal partnerships among police, prosecutors, judges, victim advocates, health care providers, faith leaders, organizations that serve culturally specific and underserved communities. The president’s budget request for OVW proposes the elimination of an FY 2020 set-side of $4 million that supported a homicide reduction initiative. The CVF legislative reform proposal does not include this set aside because OVW can continue the initiative under existing statutory authority.

Counties believe the federal government should fund domestic violence programs that permit counties and communities to develop resources and services to protect family members and prevent family violence, improve staff training, and link programs in the health, behavioral health, self-sufficiency, child welfare, criminal justice, law enforcement, and social service systems for effective treatment and prevention of domestic violence

National Association of Counties | February 2020 | 53 NACo’s Western Interstate Region (WIR) President Kevin Cann from Mariposa County, California highlights the importance of the PILT and SRS programs before a press conference during the 2019 Legislative Conference. Public Lands The management of America’s public lands is of great concern to elected county officials, and the local community. federal land management decisions are critically important because of the close relationship between our public lands and the well-being of the local economy. County officials must be full and active partners in ongoing discussions at the federal level regarding how to develop, manage and conserve nearby public lands so that they benefit the county, the local economy and a diverse set of users for generations to come. Additionally, as county governments are unable to collect property taxes from the public land in their jurisdictions, we rely heavily on funds from the Payments in Lieu of Taxes (PILT) program, as well as other revenue sharing programs including Secure Rural Schools (SRS), mineral leasing, geothermal energy development and wildlife refuge revenue sharing, which share revenues from economic activity on public lands with counties and schools.

U.S. DEPARTMENT OF THE INTERIOR (DOI) FY 2021 REQUEST: $12.7 BILLION | $2.5 BILLION DECREASE FROM FY 2020 DOI conserves and manages natural resources and cultural heritage for the benefit and enjoyment of the American people, provides scientific and evidence-based information about America’s natural resources and hazards, supports safe and responsible development of federal energy resources, fosters rural prosperity, and honors the Nation’s trust responsibilities and special commitments to American Indians, Alaska Natives and U.S.-affiliated island communities to help them prosper. The president’s budget request proposes decreases for DOI through the proposed elimination of “funding for unnecessary or duplicative programs while reducing funds below the 2020 enacted level for lower priority activities, including land acquisition and various grant programs.”

54 | NACo Analysis | President’s Budget Request FY 2021 Payments in Lieu of Taxes (PILT) FY 2021 REQUEST: $442 MILLION | $74 MILLION DECREASE FROM FY 2019* Even though counties are not able to collect property taxes on federal land, county governments must still provide essential services for our residents and those who visit public lands each year. These services include road and bridge maintenance, law enforcement, search and rescue, emergency medical and fire protection, solid waste disposal and environmental compliance. The president’s budget request proposes to decrease PILT funding in order to “support this important program while balancing Departmental funding priorities.” *For FY 2020, Congress guaranteed full, mandatory funding for PILT, but the final funding amount will not be known until June when payments are issued.

2019 PAYMENTS IN LIEU OF TAXES (PILT) PROFILES

1356 561 576 412 164 $0.0 $1.0 $10.0K $100.0K $1.0M $3.7M

Public Lands Deferred Maintenance Fund FY 2021 REQUEST: $1.3 BILLION | NEW PROGRAM The president’s budget request proposes a new fund to use unspent royalties from energy and mineral development on federal lands to tackle DOI’s $18 billion deferred maintenance backlog. The president’s budget asks for $6.5 billion over five years to establish the fund to support infrastructure improvements through an allocation of 70 percent for national parks, 10 percent for national forests, 10 percent for wildlife refuges, 5 percent for Bureau of Indian Education schools, and 5 percent for lands managed by the Bureau of Land Management (BLM). The president’s budget request suggests this proposal “will significantly improve many of America’s most visible, visited, and treasured places.”

Public lands gateway counties rely heavily on tourism to support jobs in their communities and ensuring a first- rate visitor experience is integral to their economic viability. Counties support legislative efforts to use these unspent revenues to establish a deferred maintenance account.

Oil, Gas and Mineral Revenue from Federal Lands FY 2021 PROJECTION: $2.7 BILLION | $440 MILLION DECREASE FROM FY 2020 The federal government collects revenue from energy and mineral development on federal lands in the Outer Continental Shelf and in the Arctic National Wildlife Refuge in Alaska that in then shares with impacted local and state governments. The president’s budget request projects that the president’s budget will collect $2.72 billion in revenues in FY 2021 from these activities.

National Association of Counties | February 2020 | 55 Geothermal Royalty Payments to Counties FY 2021 REQUEST: ELIMINATED | FUNDED AT $3.8 MILLION IN FY 2020 In the Energy Policy Act of 2005 (PL 102-486), Congress changed the scheme for geothermal royalty payments to share 25 percent of the royalties with counties in order to mitigate the impacts of local geothermal development and production on county governments. The budget request proposes to remove the 25 percent geothermal royalty sharing program and revert to a model of sharing 50 percent of geothermal royalties with state governments only. The request argues that “the 25-percent share for county payments is inconsistent with longstanding revenue- sharing practices and reduces the return to federal taxpayers from geothermal leases on Federal lands.”

Counties oppose efforts to reduce these and other resource revenue payments to local governments.

Wildland Fire Management FY 2021 REQUEST: $1 BILLION | $51 MILLION INCREASE FROM FY 2020 The DOI Wildland Fire Management Account is used for a variety of activities to reduce the threat of wildfire, such as active vegetation and fuels management, wildfire suppression and allowing wildfires to meet management objectives where appropriate. The budget proposes an increase for this program in order to” strengthen DOI’s wildland fire and active management capacity...to build a more stable and permanent wildland fire workforce better aligned with the challenges of the prolonged period of wildfire activity and the need to more aggressively implement active vegetation management.” This includes “substantial investments in Fire Preparedness and Fuels Management to build long-term strength in Interior’s fire programs.”

Bureau of Land Management (BLM) FY 2021 REQUEST: $1.34 BILLION | $341 MILLION DECREASE FROM FY 2020 BLM’s mission is to sustain the health, diversity, and productivity of the public lands for the multiple use and enjoyment of present and future generations. The president’s budget request proposes decreased funding for various programs within BLM in order to “reduce unnecessary regulatory burdens” and “streamline BLM operations to better serve the American public.”

BLM Land Acquisition FY 2021 REQUEST: $3 MILLION | $29.3 MILLION DECREASE FROM FY 2020 Federal land acquisition impacts counties’ tax bases because counties cannot levy property taxes on federal land. The president’s budget request proposes to decrease funding for BLM Land Acquisition, which it considers a “lower priority” activity, suggesting that “eliminating land acquisition projects funding would allow DOI to focus resources on visitor services and facility repairs in existing national parks, refuges, and public lands, which already encompass nearly 500 million acres.”

Counties support a strong county role in the federal land acquisition process.

61 PERCENT OF PILT AND SRS SUPPORT CRITICAL COUNTY SERVICES, COUNTIES have federal including emergency services, search and rescue, fire protection, land within their boundaries forest maintenance, education and transportation infrastructure

56 | NACo Analysis | President’s Budget Request FY 2021 Wild Horse and Burro Management FY 2021 REQUEST: $116.8 MILLION | $15.3 MILLION INCREASE FROM FY 2020 Overpopulation of wild horses and burros on public lands is an increasingly urgent environmental threat resulting in a degraded landscape and inhumane conditions for the animals. The president’s budget request proposes to increase funding to pursue a nonlethal management strategy mandated by Congress in FY 2020, emphasizing the administration’s commitment to working with Congress “to ensure the long-term viability of wild horse and burro herds while meeting BLM’s land management obligations.”

Counties support addressing this problem through balanced, science-based decision-making and reproductive management practices.

Oregon and California (O&C) Grant Lands FY 2021 REQUEST: $112.8 MILLION | LEVEL WITH FY 2020 O&C lands span 2.4 million acres across 18 counties in Oregon. These lands were classified under the 1937 O&C Act as timberlands to be managed by DOI for a permanent, sustainable supply of timber production. The president’s budget proposes to maintain funding at FY 2020 levels for this program with $102.0 million for forest management and timber activities. According to the president’s budget request, “BLM will continue to plan for offering up to 500 million board feet of timber in 2021, pursuant to its obligation under the O&C Act.” The budget also includes $10.3 million for the Public Domain Forest Management program.

U.S. Fish and Wildlife Service (USFWS) FY 2021 REQUEST: $1.38 BILLION*| $265 MILLION DECREASE FROM FY 2020 *Figure includes discretionary request only USFWS is the only agency in the federal government whose primary responsibility is management of fish and wildlife for the American public. The Service helps ensure a healthy environment for people while providing opportunities for Americans to enjoy the outdoors and our shared natural heritage. The president’s budget request proposes reductions across various USFWS discretionary programs in order to “support higher priorities.”

USFWS LAND ACQUISITION ACCOUNT FY 2021 REQUEST: $10.9 MILLION | $56.1 MILLION DECREASE FROM FY 2020 The president’s budget request proposes to decrease funding for USFWS Land Acquisition, which it considers a “lower priority” activity, suggesting that “eliminating land acquisition projects funding would allow DOI to focus resources on visitor services and facility repairs in existing national parks, refuges, and public lands, which already encompass nearly 500 million acres.”

National Association of Counties | February 2020 | 57 Cooperative Endangered Species Conservation Fund FY 2021 REQUEST: ELIMINATED | FUNDED AT $54.5 MILLION IN FY 2020* *This reflects the discretionary spending request. The administration requests $72.9 million in mandatory spending on the Cooperative Endangered Species Conservation Fund (a $6.7 million increase from FY 2020.) The mandatory funds represent an amount equal to 5 percent of total Federal Aid/Sport Fish and Lacey Act violation collections above $500,000. The Cooperative Endangered Species Conservation Fund provides money to states and territories for voluntary habitat and species conservation projects for candidate, proposed and listed species. States and territories must provide a 25 percent non-federal funding match to qualify. More than half of listed species spend at least a portion of their lifecycles on non-federal land, and this program provides incentives for non-federal partners to cooperate in conservation efforts. The president’s budget proposes the elimination of this account “in order to support higher priorities.”

Federal Aid in Wildlife Restoration Act FY 2021 REQUEST: $810.8 MILLION | $146 MILLION INCREASE FROM FY 2020 The Pittman-Robertson Federal Aid in Wildlife Restoration Act primarily provides critical funding to states for the restoration and conservation of wildlife habitat and wildlife management research. Pittman-Robertson funds may also be used for hunter education courses and maintaining public shooting ranges. The president’s budget proposes to increase funding for these programs because they represent “high priority projects” that “address problems affecting States on a regional or national basis.”

National Park Service (NPS) FY 2021 REQUEST: $3.54 BILLION | $574 MILLION DECREASE FROM FY 2020 As the steward of 419 park units, 23 national scenic and national historic trails, and 64 wild and scenic rivers, the NPS is charged with conserving these lands and historic features that were designated for their cultural and historic significance, scenic and environmental attributes, and educational and recreational opportunities. Additionally, the NPS helps the nation protect resources for public enjoyment through its financial and technical assistance programs that support activities outside of the National Park System. The president’s budget request proposes to decrease funding for NPS programs that it does not consider “core mission areas” or that meet “immediate needs of the park system” in an effort to “balance the needs for fiscal prudence, continued delivery of critical missions, and support to advance priorities.” The request focuses resources on the “most important activities.”

Land Acquisition and State and Local Programs Accounts FY 2021 REQUEST: $8.6 MILLION | $197.5 MILLION DECREASE FROM FY 2020 The budget president’s budget request proposes to decrease funding for NPS Land Acquisition, which it considers a “lower priority” activity, suggesting that “eliminating land acquisition projects funding would allow DOI to focus resources on visitor services and facility repairs in existing national parks, refuges, and public lands, which already encompass nearly 500 million acres.”

58 | NACo Analysis | President’s Budget Request FY 2021 National Recreation and Preservation Account FY 2021 REQUEST: $34 MILLION | $37 MILLION DECREASE FROM FY 2020 The National Recreation and Preservation Account supports local efforts to preserve natural and cultural resources. These programs support collaborative efforts to conserve and enhance landscapes, urban parks, cultural resources and wildlife habitats. The president’s budget request for the Account proposes the elimination of the Heritage Partnership Program (funded at $21 million in FY 2020) because “National Heritage Areas are not part of the National Park System, and the lands are not federally owned and managed.” The request also proposes the elimination of smaller cultural programs.

Historic Preservation Fund FY 2021 REQUEST: $41 MILLION | $78 MILLION DECREASE FROM FY 2020 The Historic Preservation Fund supports Historic Preservation Offices in states, territories, and tribal lands to preserve historically and culturally significant sites and provides competitive grants to other, non-Federal entities.

NPS Construction Account FY 2021 REQUEST: $192.6 MILLION | $197 MILLION DECREASE FROM FY 2020 The NPS Construction Account funds construction projects, equipment replacement, management, planning, operations, and special projects within NPS. The president’s budget proposes a decrease in funding for this account, proposing only to fund projects that “address the highest priority needs on mission-critical assets.”

Counties call for adequate funding for infrastructure in its national parks, national forests, and other public lands. This includes funding to support roads, bridges, trails, campgrounds, visitor centers, interpretive projects, and related facilities.

NPS Centennial Challenge Fund FY 2021 REQUEST: ELIMINATED | FUNDED AT $15 MILLION IN FY 2020 The NPS Centennial Challenge Fund was established in 2015 to reduce deferred maintenance, improve services and strengthen partnerships with non-federal actors. The Fund gives NPS the chance to leverage federal funds with outside funding at a minimum 1:1 ratio to meet these goals. The president’s budget request proposes the elimination of discretionary funding for Centennial Challenge program, suggesting that NPS should instead rely on receipts from Senior Park passes that are deposited into a mandatory account.

National Association of Counties | February 2020 | 59 USDA Forest Service (USFS) FY 2021 REQUEST: $5.34 BILLION | $155 MILLION DECREASE FROM FY 2020 USFS’ mission is to sustain the health, diversity, and productivity of the nation’s forests and grasslands to The president’s budget request proposes a meet the needs of present and future generations. decrease to USFS by eliminating or reducing The president’s budget request proposes a decrease to USFS by eliminating or reducing programs that do programs that do not “focus on active forest not “focus on active forest management, maintaining management, maintaining and improving and improving infrastructure, and effective wildfire infrastructure, and effective wildfire response.” response.”

National Forest System (NFS) FY 2021 REQUEST: $2 BILLION | $47.5 MILLION INCREASE FROM FY 2020 The NFS Account directs funding toward management of the 193 million acres of USFS forests and grasslands. It supports the planning and implementation of activities for ecosystem management, such as timber and non-timber forest products harvesting, recreational opportunities, watershed protection and wildlife habitat conservation. The president’s budget request proposes to increase funding for programs within NFS, including: • Hazardous Fuels Removal Program FY 2021 request: $510 million | $65 million increase from FY 2020 This program targets removal of fire and disease prone vegetation. Preventative measures, like fuels removal, lead to a reduced risk for wildland fire and saves the USFS money in the long-term by decreasing the scope, severity and frequency of fires. The president’s budget request includes a “critical increase needed to support staffing levels and will allow the Hazardous Fuels Reduction program to manage hazardous fuel loads to reduce the risk of severe fires, improve forest health, and ensure the productive and sustainable use of National Forest System lands.” Counties support accelerated harvest and fuels reduction to levels that can be managed into the future as a strategy to combat the growing threat of wildfires.

State and Private Forestry FY 2021 REQUEST: $217.4 MILLION | $129.5 MILLION DECREASE FROM FY 2020 This USFS program aids local and state resource managers and landowners in making the nation’s forest and grasslands more sustainable, reducing the threat of wildland fire and restoring ecosystems. It leverages the capacity of state agencies and partners to manage state and private lands in a way that improves landscape health and water quality in surrounding communities. The president’s budget proposes a decrease in funding for programs within State and Private Forestry that do not support “active forest management, maintaining and improving infrastructure, and effective wildfire response.”

Capital Improvement and Maintenance FY 2021 REQUEST: $453.2 MILLION | $1.8 MILLION DECREASE FROM FY 2020 USFS Capital Improvement and Maintenance targets funding toward mission critical infrastructure supporting

60 | NACo Analysis | President’s Budget Request FY 2021 the NFS, deferred maintenance needs and public access to the NFS. The president’s budget request proposes to increase funding to better support “maintaining public health and safety, reducing the deferred maintenance backlog, and for the operations, maintenance, and reconstruction of existing roads, including timber haul roads.”

Counties call for adequate funding for infrastructure in its national parks, national forests, and other public lands. This includes funding to support roads, bridges, trails, campgrounds, visitor centers, interpretive projects, and related facilities.

Land Acquisition FY 2021 REQUEST: ELIMINATED | FUNDED AT $79.7 MILLION IN FY 2020 The USFS Land Acquisition program funds the acquisition and donation of lands, waters, and related interests within the National Forest System to further agency goals for restoration, outdoor recreation and public access, habitat for wildlife, and to protect water quality. The president’s budget proposes the elimination of this program “because the Forest Service will focus on active forest management, maintaining and improving infrastructure, and effective wildfire response.”

USFS Wildland Fire Management (WFM) FY 2021 REQUEST: $2.4 BILLION | $54 MILLION INCREASE FROM FY 2020 Through WFM, the USFS protects life, property and natural resources on NFS lands, other federal lands, and an additional 20 million acres of non-federal lands under agreements. The president’s budget increases funding for this program because WFM is a “top priority” in the president’s budget request. Investments will “focus efforts on increasing the speed and efficiency of critical firefighter deployment and building capacity to use cutting-edge scientific tools to reduce the risk of wildland fire to people and places.” Within the WFM request the budget supports $1.4 billion for Preparedness (a $58.8 million increase from FY 2020) to ensure healthy landscapes and a strong response to wildland fire, such as salaries and operations costs for USFS firefighters, emergency dispatch systems and wildland fire and smoke modeling. Additionally, the request provides level funding with FY 2020 ($1 billion) for Suppression Operations. The Suppression program is the primary funding source for wildfire extended attack suppression response and large fire support, allowing the USFS to maintain a strong emergency response role, working alongside other federal, state, tribal and local government partners to protect life and property in suppression response operations. In addition, this program helps improve forest conditions and maintain resilient landscapes by managing naturally ignited, unplanned wildfires to accomplish resource management goals.

Wildfire season is a year-round issue for public lands counties. Wildfires destroy public lands, endanger access to vital resources, decrease biodiversity, hinder economic opportunity, decimate municipal watersheds, and negatively impact public health and safety. County officials believe federal, state and local governments must work together to combat this growing threat to communities, livelihoods and the environment. This effort must include appropriating sufficient funds to effectively combat wildfire on public lands without jeopardizing other accounts.

National Association of Counties | February 2020 | 61 NACo’s Transportation Policy Steering Committee Chair Randy Maluchnik from Carver County, Minnesota highlights the importance of increased investments in, and reforms to, critical transportation programs during a Capitol Hill briefing. Transportation and Infrastructure Counties are leaders in the nation’s transportation and infrastructure network. The nation’s counties annually invest more than $134 billion in building infrastructure and operating and maintaining public works. Counties own 45 percent of America’s roads and nearly 40 percent of the National Bridge Inventory. We are directly involved in the operation of 78 percent of the nation’s public transit systems and 34 percent of public airports. Providing efficient transportation and transit options such as buses, trains, light rail and subway systems, counties connect residents, businesses and communities to the national and global economies. In addition to $810 billion for surface transportation programs, the president’s budget request also includes $190 billion in FY 2021 in additional infrastructure investments across a range of sectors that total $1 trillion over ten years.

WHITE HOUSE INFRASTRUCTURE PROPOSAL “HISTORIC INVESTMENT IN AMERICA’S INFRASTRUCTURE” The president’s budget request includes an infrastructure proposal that would make $1 trillion in federal infrastructure investments in both the short and long-term. Unlike previous proposals from the administration, this is actual federal spending; however, it relies heavily on the assumption that the Highway Trust Fund will remain solvent. As part of the $1 trillion, $190 billion in mandatory spending is directed in FY 2021 for projects across a range of infrastructure sectors, including:

• $60 billion for a new infrastructure grant program. The Building Infrastructure Great grants program would accelerate the delivery of “mega-projects” in surface transportation, pipeline, port, intermodal connections, locks and dams, energy, broadband, drinking water and wastewater sectors.

• $50 billion for a new freight program. The Moving America’s Freight Safely and Efficiently program would support projects with significant national benefits on highway, rail, port and waterway freight networks through both competitive and formula grants.

62 | NACo Analysis | President’s Budget Request FY 2021 • $35 billion for a new bridge program. The proposal states: “Approximately 47,000 bridges in the United States are classified in poor condition – 80 percent of which are in rural areas. Rural communities often lack the resources to rebuild their bridges, and State and local governments often struggle to find the funding cover the significant cost of replacing large bridges.” To address these compromised structures, the request would divide the program’s funding by directing $12 billion for off-system bridges through formula funding and $23 billion for large bridges through competitive funding.

• $25 billion for a new rural infrastructure program. The Revitalizing Rural America program facilitates the delivery of infrastructure projects to rural communities, including broadband, transportation, water and other related projects via formula funding to states, territories and tribes.

• $20 million for a new transit program. The goal of the Transit State of Good Repair program is to “make significant progress in reducing the large and growing state of good repair transit backlog.” This funding may not be used to increase the capacity of public transit, only to bring it up to a state of good repair.

• $6.5 billion for a new fund for public lands infrastructure. The proposal creates a Public Lands Infrastructure Fund to address the deferred maintenance backlog on public lands including national parks, forests and wildlife refuges. Revenue from energy leases over five years would establish the fund.

Off-System Bridges FY 2021 REQUEST: $12 BILLION | $11.2 BILLION INCREASE FROM FY 2020 While not mentioned in the FHWA request where it is traditionally housed, off-system bridges are addressed as part of the president’s overall $1 trillion infrastructure investment proposal. The White House provides $12 billion in formula funding for FY 2021 to address bridges in need of repair that are not on the federal-aid highway system, stating of the proposal’s new Bridge Rebuilding program: “This program will make targeted investments in critical bridge infrastructure to restore them to good condition.” Though the request does not explicitly propose to eliminate the current set-aside for off-system bridges through the Surface Transportation Block Grant Program (STBGP), the likely intention of the proposal is to do so and instead direct the one-time $12 billion through formula funding. The president’s FY 2020 request eliminated the set-aside altogether and did not provide any alternative funds. Current funding for the set-aside is flat and based on a state’s apportionment for the no-longer-existent Highway Bridge Program in FY 2009, totaling around $776 million annually.

Addressing the maintenance backlog of off-system bridges is a major priority for counties who own 53 percent of the nation’s structurally deficient bridges, the majority of which are off the federal-aid highway system.

Permit Streamlining The proposal references the administration’s streamlining efforts, including President’s 2017 Executive Order 13807, better known as “One Federal Decision,” as well as the recent proposed update to the National Environmental Policy Act (NEPA) implementation from the Council of Environmental Quality, stating: “The impact of these investments will be amplified by the permitting reforms put in place since the beginning of this Administration…to help ensure the permitting process protects the environment and works for all Americans.”

Counties support streamlining the federal regulatory process to deliver badly needed infrastructure projects quicker, cheaper and more efficiently while still ensuring good environmental stewardship.

National Association of Counties | February 2020 | 63 Surface Transportation Reauthorization FY 2021 REQUEST: $63.7 BILLION IN FY 2021 | $810 BILLION OVER TEN YEARS The remaining $810 billion is directed over ten years for surface transportation programs. This request for the Federal Highway Administration (FHWA) and Federal Transit Administration (FTA) reflects the administration’s goals for an upcoming “comprehensive surface transportation reauthorization proposal” that it plans to send to Congress for consideration later this year. The current surface transportation bill, the Fixing America’s Surface Transportation (FAST) Act (P.L. 114-94), will expire on September 30, 2020. The president’s request includes the third surface transportation proposal from the federal government but the only one to reauthorize programs for ten years, from FY 2021 to 2030. The White House’s reauthorization includes the following spending levels over ten years:

• Federal Highway Administration: $602 billion

• Federal Transit Administration: $155 billion

• Federal Railroad Administration: $17 billion

• Traffic and Motor Carrier Safety Administrations: $20 billion

• Pipeline and Hazardous Material Safety Administration: $1 billion

• TIFIA and BUILD Programs: $16 billion

SURFACE TRANSPORTATION REAUTHORIZATION PROPOSALS: FEDERAL HIGHWAY ADMINISTRATION AND FEDERAL TRANSIT ADMINISTRATION FUNDING LEVELS

FAST Act (P.L. 114-94) FWA FTA

ATIA (S. 2302) N/A

House Moving Forward Framework

White House FY21 Request*

$0 $175 $350 $525 $700 *over ten years (numbers in billions)

The proposal would shift a large amount of responsibility for surface transportation from the federal government down to state and local governments. The DOT CJ states: “States and localities are best equipped to understand the infrastructure needs of their communities. The Federal Government should provide support and incentives for communities to achieve their local needs. DOT’s surface transportation reauthorization proposal has been

64 | NACo Analysis | President’s Budget Request FY 2021 developed after listening to and working with our State and local partners to ensure that the Federal role is one of help, not hindrance. The proposal will right-size the Federal role in areas where States and localities can make more tailored and efficient decisions and provide our State and local partners with funding certainty and programmatic continuity over the long-term.” As a way to pay for this proposal the White House proposes the elimination of transfers to the FHWA and FTA from the U.S. Department of Treasury’s General Fund (GF) which have been necessary in recent years to cover shortfalls from the soon-to-be-insolvent Highway Trust Fund (HTF). Instead, the White House would fund the reauthorization through contract authority from the HTF, a budgetary tool that allows states, local governments and public entities to enter into binding contracts for projects that will be reimbursed by the federal government at a later date. Returning solvency to the HTF is not addressed. The remaining $55 billion would come from the General Fund for discretionary grant programs, like BUILD and INFRA. Few additional details are provided in the request itself with a promise to unveil a surface transportation reauthorization in early 2020.

U.S. DEPARTMENT OF TRANSPORTATION (DOT) FY 2021 REQUEST: $21.8 BILLION* | $3 BILLION DECREASE FROM FY 2020 *Figure does not include mandatory spending: $67.1 billion in obligation limits ($6 billion increase from FY 2020) The mission of the DOT is to ensure that the Nation has the safest, most efficient, and modern transportation system in the world. The Department also ensures the system improves the quality of life for all American people and communities, from rural to urban, and increases the productivity and competitiveness of American workers and businesses. The president’s budget request would decrease discretionary funding within DOT through various proposed program reductions and eliminations, suggesting that with the remaining funding “The budget supports necessary investments that ensure the Nation’s air, surface, and maritime transportation systems are safe.”

U.S. DOT FUNDING LEVELS, FY20 ENACTED LEVELS VS. WHITE HOUSE FY21 REQUEST

FHWA

FTA

FRA

FAA FY20 ENACTED WHITE HOUSE FY21 REQUEST MARAD

NHTSA

FMCSA

PHMSA $0 $11 $22 $33 $44 $55 (numbers in billions) Office of the Secretary (OST) FY 2021 REQUEST: $30.7 MILLION | $7.3 MILLION DECREASE FROM FY 2020 The OST is responsible for program and policy development and oversight within the Department of Transportation. OST also manages grant, research, credit, and other programs that support essential infrastructure, advancements in safety and technology, and economic viability.

National Association of Counties | February 2020 | 65 Better Utilizing Investments to Leverage Development (BUILD) Grants FY 2021 REQUEST: $1 BILLION | LEVEL WITH FY 2020 The BUILD competitive grant program awards federal funds directly to counties for projects that are generally ineligible under existing surface transportation formula programs, including those that increase the quality of life and economic competitiveness of communities across the country, particularly in rural areas. This flexible funding can be used for a range of projects, including road and bridge projects and may be applied for directly by counties through the U.S. DOT. Notably, the president’s budget request proposes to authorize the BUILD for the first time, making the program a guaranteed line item in future budgets if enacted by Congress. The president’s budget request suggests that BUILD “provides an equitable geographic distribution of funds as well as an appropriate balance in addressing rural and urban communities’ needs with infrastructure investments across a variety of transportation modes.”

Safety is at the forefront of local decision-making; however, without adequate federal investments, transportation infrastructure in rural areas is deteriorating, forcing county officials to make difficult financial and project repair decisions that may compromise safety.

Two-thirds of counties are In fact, 46 PERCENT of 80 PERCENT of considered rural, with rural the country’s vehicular fatalities bridges in poor condition roads accounting for almost occur in rural areas while just 19 are also located in rural 70 PERCENT of the percent of America’s population communities. national transportation system. lives here.

USDOT, transportation.gov/rural

Infrastructure for Rebuilding America (INFRA) Grants FY 2021 REQUEST: $1 BILLION | $35 MILLION DECREASE FROM FY 2020* *FY 2021 and FY 2020 figures do not include authorizations for INFRA from the Highway Trust Fund and only reflect transfers from the General Fund. The INFRA grant program provides flexible funding directly to local governments for infrastructure projects whose sponsors have matching funds and achieve national goals, such as alleviating congestion. The president’s budget request proposes a slightly decreased funding level for this program, but maintains that $1 billion in discretionary funding “is necessary to address the needs of States, local and tribal governments, or transportation authorities in seeking more cost-effective, innovative solutions to complex transportation and economic development challenges.” The $1 billion request will continue to support highway, freight rail, intermodal, and port infrastructure projects.

66 | NACo Analysis | President’s Budget Request FY 2021 Federal Highway Administration (FHWA) FY 2021 REQUEST: $50.7 BILLION | $2.5 BILLION INCREASE FROM FY 2020 | $602 BILLION OVER TEN YEARS The FHWA supports State and local governments, Tribes, and other Federal agencies, in the design, construction, and maintenance of the Nation’s highway system and various Federal and Tribal-owned lands. The president’s request proposes an increase in funding for the FHWA as “a response to input from FHWA and other stakeholders “to expand program and funding flexibilities” and institute reforms that recognize “states and localities, not the federal government, are best equipped to understand the infrastructure challenges and investments needs of their communities.” Compared to other legislative proposals and the current law, the president’s proposal funds FHWA annually at: • 33 percent more per year than the FAST Act • 5 percent more than S. 2302, the America’s Transportation Infrastructure Act (ATIA) • 3 percent less than House Democrats’ Moving Forward Framework

Dedicated funding for locally owned transportation infrastructure remains a top priority for counties, as local transportation assets left unaddressed continue to deteriorate due to overuse, federal underinvestment and extreme weather conditions, resulting in compromised safety for our residents and the 44 percent of traffic on local rural roads that is actually an urban citizen.

Transportation Alternatives Program (TAP) FY 2021 REQUEST: ELIMINATED | FUNDED AT $850 MILLION IN FY 2020 TAP provides funding to counties to execute projects that deliver alternatives to traditional transportation methods, including bike paths, trails, and other related community improvements that facilitate the integration of non-auto modes into local communities. The president’s budget request proposes the elimination program, stating: “The budget eliminates a required set-aside for the Transportation Alternatives program that restricts States from choosing the most meritorious projects. This elimination provides additional flexibility to use the resources within the Surface Transportation Block Grant Program to support projects that rehabilitate or expand highways in a manner that supports interstate or regional commerce.”

Counties support alternative transportation methods that may reduce congestion. Additionally, counties support flexible, direct funding provided through the STBGP to address the needs of local infrastructure, including projects that will expand transportation options for our local residents.

Federal Transit Administration (FTA) FY 2021 REQUEST: $13 BILLION | $400 MILLION DECREASE FROM FY 2020 | $155 BILLION OVER TEN YEARS The Federal Transit Administration (FTA) invests strategically in improving the safety and state of good repair of the Nation’s public transportation infrastructure. FTA partners with State and local governments to create and enhance public transportation systems through financial investments of approximately $13 billion annually. The president’s budget request proposes to decrease funding for FTA as a result of streamlining grant programs to “reduce administrative burdens” and would focus on bringing existing transit assets up to a state of good repair without increasing capacity. The request also proposes to improve transit safety, facilitate transit systems in underserved and rural areas and leverage emerging technologies.

National Association of Counties | February 2020 | 67 Transit Formula Grants FY 2021 REQUEST: $11 BILLION | $85 MILLION INCREASE FROM FY 2020 The president’s budget request proposes to increase funding for Transit Formula Grants, stating that “additional details on this account will be provided in the proposed surface transportation reauthorization proposal.”

Counties support full funding of the urbanized area formula grant program at historic levels for both capital and operating assistance.

Capital Investment Grants (CIG) FY 2021 REQUEST: $1.9 BILLION | $90 MILLION DECREASE FROM FY 2020 Capital Investment Grants fund the construction of major capital projects that provide new and expanded transit service. The president’s budget request proposes $22.5 billion over 10 years for CIG, including $1.89 billion in FY 2021. According to the budget proposal, “this schedule reflects 2019 actual and 2020 enacted program and financial information for the Capital Investment Grant program.” Additional resources are necessary in the long term because “the number of projects seeking CIG funding has grown significantly in recent years—a clear indication of the intense demand from communities around the United States for new and expanded transit services.”

Counties support increased federal funding opportunities for counties through discretionary grant programs, like CIG, to address necessary transit capital investments, including rail modernization, new start and small start system investments and extraordinary bus capital needs.

Counties directly support 78 percent of public transit systems that connect people, businesses and economies and believe that Congress should provide funds, in partnership with state and local governments, to improve existing public transportation systems and to establish new transit systems where needs and benefits have been determined by local elected officials.

Federal Railroad Administration (FRA) FY 2021 REQUEST: $2.03 BILLION | $76 MILLION DECREASE FROM FY 2020 | $17 BILLION OVER TEN YEARS The Federal Railroad Administration’s (FRA) mission is to enable the safe, reliable, and efficient movement of people and goods for a strong America, now and in the future. FRA meets this mission by developing and enforcing minimum safety standards, promoting non-regulatory safety activities, investing in rail services and infrastructure, and researching and developing innovations and technology solutions. The president’s budget request proposes the elimination of some direct funding opportunities for counties to improve rail infrastructure in local communities, including:

• Restoration and Enhancement Grants (funded at $2 million in FY 2020)

• State of Good Repair Grants (funded at $2 million in FY 2020) The budget does not offer any justification for eliminating these programs.

Local governments must have strong federal partners to support our efforts to expand and advance passenger rail service, enhance and maintain freight rail lines and improve grade crossing safety. Counties believe there should be a coordinated federal-state-local effort to return rail service to its appropriate place in a balanced national transportation system.

68 | NACo Analysis | President’s Budget Request FY 2021 Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grants FY 2021 REQUEST: $330 MILLION | $5 MILLION INCREASE FROM FY 2020 CRISI grants provide direct federal funding opportunities for counties to improve the safety, efficiency and reliability of passenger and freight rail systems. As part of a 10 year reauthorization proposal, the president’s budget request proposes an increase in these programs to invest in projects within the United States to improve railroad safety, efficiency, and reliability; mitigate congestion at both intercity passenger and freight rail chokepoints; enhance multi-modal connections; and lead to new or substantially improved intercity passenger rail corridors.

Rail Safety FY 2021 REQUEST: $225.6 MILLION | $1.4 MILLION INCREASE FROM FY 2020 The appropriation for the Safety and Operations (S&O) account funds FRA’s programs to improve railroad safety and execute financial assistance. The president’s budget request proposes an increase for this program as safety is one of FRA’s “top priorities” for FY 2021.

Rail safety is a critical issue for counties, especially in rural areas where 80 percent of highway-rail grade crossings lack signage, contributing to a 39 percent higher rate of fatalities at these crossings in comparison to urban settings.

Amtrak FY 2021 REQUEST: $1.49 BILLION | $510 MILLION DECREASE FROM FY 2020 FRA’s Grants to Amtrak provide capital, operating, and debt service funding to Amtrak, as well as support FRA’s management and oversight of Amtrak. The president’s budget request proposes to decrease funding for Amtrak as part of a proposal to restructure Amtrak’s Long Distance network, as its “routes suffer from poor on-time performance; account for only 4.5 million of Amtrak’s 32.5 million annual passengers; and incur annual operating losses of nearly $500 million.” The proposal includes $550 million in transitional grants for states and Amtrak to “begin the process to restructure the network,” which the administration believes “can result in better service at a lower cost.” The budget request also proposes $325 million for continued investments in Northeast Corridor, to improve reliability and performance of the corridor, which is “equal to the 2017 enacted level,” and “would encourage Amtrak to increase efficiencies across all asset lines.” This proposed shift in financial responsibility to states has the potential to negatively affect counties who rely on rail as a major source for the movement of goods and people. Rail is an especially prevalent form of travel in rural counties, who would be adversely impacted should the cost to states be passed down to counties, directly or indirectly, through fees or the depletion of other state programs that counties utilize.

Counties believe Congress should continue to provide subsidies to Amtrak at a level consistent with maintaining a reasonable level of service and to provide necessary capital improvements with appropriate accountability controls. However, counties oppose using any Highway Trust Fund revenue to shore up Amtrak’s operations.

National Association of Counties | February 2020 | 69 Federal Aviation Administration (FAA) FY 2021 REQUEST: $17.5 BILLION | $100 MILLION DECREASE FROM FY 2020 The Federal Aviation Administration (FAA) oversees all aspects of civil aviation in the United States, operating the largest, safest and most complex aerospace system in the world. Safety is the core of FAA’s mission and its top priority. The president’s budget request proposes to slightly decrease funding for FAA, proposing the elimination of programs it deems inefficient, but will also focus on “targeted investments to protect aviation safety, bring new entrants into the national airspace, operationalize NextGen, make investments in our nation’s infrastructure, and more fully engage our communities on noise.”

Counties are directly involved in the operation of 34 percent of the nation’s airports and play a central role in ensuring safety and maintaining functionality of the national airspace. Counties believe the federal government should more fully recognize the ability of counties, as area-wide governments, to plan and coordinate aviation with other modes of transportation and to control land use for future airport development.

Airport Improvement Program (AIP) FY 2021 REQUEST: $3.35 BILLION | $400 MILLION DECREASE FROM FY 2020 *FY 2020 appropriation of $3.75 billion includes $400 million transfer from the GF; the President’s budget does not transfer any additional funding to AIP from the GF. AIP provides federal funding for capital projects that will improve airport infrastructure, including runways, taxiways, airport signage, airport lighting and airport markings. Airports are entitled to a certain amount of AIP funding each year, based on passenger volume. AIP combines federal, state and local resources to fund improvements to the over 5,000 publicly owned airports across the country, including the 34 percent directly supported by counties. The president’s budget request proposes the elimination of discretionary grants for this program because “state-of-repair of eligible AIP projects such as runways and taxiways is high, and the Administration believes additional discretionary funding is not necessary at this time.”

Essential Air Service (EAS) FY 2021 REQUEST: $296 MILLION* | $16.4 MILLION DECREASE FROM FY 2020* *FY 2021 and FY 2020 spending levels include EAS discretionary funding ($142 million in FY 2021) and mandatory FAA fees ($154 million in FY 2021) The EAS provides direct subsidies to air carriers to ensure that small communities can maintain a minimal level of air service following the deregulation of the airline industry by Congress in 1978. The president’s budget proposes to decrease EAS funding becayse “EAS costs have more than doubled in the past ten years and many EAS flights are left unfilled and have high per passenger subsidy costs. In addition, several EAS-eligible communities are relatively close to major airports. There are more efficient ways to target Federal funds to address the transportation needs of rural communities.”

Counties believe the federal government should continue subsidies for assisting airlines serving small communities and fully fund the EAS program.

70 | NACo Analysis | President’s Budget Request FY 2021 Small Community Air Service Development Program (SCASDP) FY 2021 REQUEST: ELIMINATED | FUNDED AT $10 MILLION FY 2020 Like the EAS, the goal of the SCASDP is to ensure continued air service in small communities. However, SCASDP differs from EAS in that its funding is more flexible and the eligibility criteria broader. It also provides grants directly to the community rather than subsidies to air carriers, as is the case with EAS. The president’s request proposed the elimination of the SCASDP, as well as a transfer of the program from the FAA to the OST. The budget offers no justification for eliminating the program; however, it is likely similar to their reasoning for reducing EAS as stated above. Cuts to federal programs that support small and rural airports are likely to jeopardize the economic The president’s request proposes the elimination stability of these smaller communities who rely on of the SCASDP, which provides funding to these essential programs for both connectivity and support small and rural public airports that often community development. Public airports in small and rural communities often act as valuable economic act as economic generators for the entire region. generators that are critical to the entire region.

Counties support full funding for the Essential Air Service (EAS) Program and the Small Community Air Service Development Program (SCASDP) as these programs help airlines serve small or rural counties who desire to maintain, attract and/or expand air service but have been adversely impacted by federal deregulation of the airline industry.

NextGen Program FY 2021 REQUEST: $996.5 MILLION| $230 MILLION DECREASE FROM FY 2020 NextGen aids public air travelers as well as the air industry with improvements related to the accuracy and efficiency of the national airspace. The president’s budget request proposes to decrease funding for the program, suggesting this “is consistent with previous funding levels and reflects the priorities identified in the NextGen Advisory Committee for improving traffic flow.”

Office of Unmanned Aircraft Systems (UAS) Integration FY 2021 REQUEST: $34.6 MILLION | $1 MILLION INCREASE FROM FY 2020 Among other responsibilities, the Office of UAS Integration implements the UAS Integration Pilot Program (IPP), a unique project first established by the White House in FY 2018 that brings stakeholders together to ensure the safe integration of UAS, or drones, into the national airspace while also addressing community concerns related to privacy and public safety, including the concerns of State, local, and tribal governments. The president’s budget request increases funding for this program to support FAA’s efforts to “safely integrate unmanned aircraft systems (UAS) into the national airspace.”

National Association of Counties | February 2020 | 71 Transportation Safety Programs FY 2021 REQUEST (TOTAL): $1.9 BILLION | LEVEL WITH FY 2020 | $18 BILLION OVER TEN YEARS The president’s budget request for safety programs across DOT is level with FY 2020 funding and directs both the National Highway Traffic Safety Administration and the federal Motor Carrier Administration to undertake a crash causation study to better understand the contributing factors for crashes involving heavy trucks, the first study of its kind in over a decade. The request additionally proposes for FY 2021:

• National Highway Traffic Safety Administration (NHTSA): $964.5 million | $24.8 million decrease from FY 2020. The president’s budget request proposes to reduce research funding from the General Fund in NHTSA.

• Federal Motor Carrier Safety Administration (FMCSA): $702 million | $22.9 million increase from FY 2020

• Pipeline and Hazardous Materials Safety Administration (PHMSA): $276.2 million | $3.7 million decrease from FY 2020. The president’s budget request for PHMSA aligns with a June 2019 legislative proposal from administration, the “Protecting our Infrastructure of Pipelines and Enhancing Safety Act of 2019.”

Safety remains at the forefront of local decision making. Over two thirds of counties are considered rural, and while only 19 percent of the nation’s population live in rural counties, 46 percent of all vehicle fatalities occur in these areas. Roughly 47 percent of all heavy truck vehicle miles traveled occur on rural roads, creating additional safety considerations, as well as the need for increased federal investments to address safety concerns on both federal-aid highways and our locally owned roads (45 percent) and bridges (38 percent).

Maritime Administration (MARAD) FY 2021 REQUEST: $793 MILLION | $254.2 MILLION DECREASE FROM FY 2020 MARAD programs strengthen and promote the economic competitiveness, efficiency, and productivity of the U.S. maritime transportation system and help to ensure sealift capability and capacity is available to support the Nation’s military defense and economic security needs. The president’s budget request proposes to reduce funding for MARAD through the proposed elimination of:

• Assistance to Small Shipyards Grants (funded at $20 million in FY 2020). The budget request does not provide a justification for

• Port Infrastructure Development Program (funded at $225 million in FY 2020). The budget request suggests that “These projects are eligible for funding requested under the INFRA and BUILD programs in 2021 so no additional funds are requested for this program.” The budget does not provide an explanation for the elimination for the Assistance to Small Shipyards grant program.

Counties support legislation that provides increased funding and regulatory relief to facilitate the revitalization, modernization, and maintenance of port facilities, including legislation that ties the expenditure of harbor maintenance trust fund revenues to their intended purpose – harbor maintenance projects.

72 | NACo Analysis | President’s Budget Request FY 2021 NACo GOVERNMENT AFFAIRS STAFF DIRECTORY

MATTHEW D. CHASE LINDSEY HOLMAN JONATHAN SHUFFIELD EXECUTIVE DIRECTOR / CEO ASSOCIATE LEGISLATIVE DIRECTOR ASSOCIATE LEGISLATIVE DIRECTOR [email protected] Justice & Public Safety Public Lands Western Interstate Region 202.942.4201 [email protected] [email protected] 202.942.4213 202.942.4207 DEBORAH COX DEPUTY EXECUTIVE DIRECTOR / JESSICA JENNINGS VALERIE BRANKOVIC DIRECTOR OF GOVERNMENT ASSOCIATE LEGISLATIVE DIRECTOR LEGISLATIVE ASSOCIATE AFFAIRS Transportation Veterans and Military Services [email protected] [email protected] [email protected] 202.942.4286 202.942.4264 202.942.4254

BLAIRE BRYANT RACHEL MERKER BRETT MATTSON ASSOCIATE LEGISLATIVE DIRECTOR ASSOCIATE LEGISLATIVE DIRECTOR LEGISLATIVE ASSOCIATE Health Human Services and Education [email protected] [email protected] [email protected] 202.942.4234 202.942.4275 202.661.8843 ZACHARY GEORGE LEGISLATIVE ASSISTANT DARIA DANIEL ADAM PUGH [email protected] ASSOCIATE LEGISLATIVE DIRECTOR ASSOCIATE LEGISLATIVE DIRECTOR 202.661.8819 Community, Economic & Workforce Environment, Energy and Land Use Development [email protected] 202942.4269 NICOLETTE GERALD Large Urban County Caucus LEGISLATIVE ASSISTANT [email protected] ARTHUR SCOTT [email protected] 202.942.4212 ASSOCIATE LEGISLATIVE DIRECTOR 202.942.4260 / POLITICAL OUTREACH MANAGER ERYN HURLEY Agriculture & Rural Affairs ASSOCIATE LEGISLATIVE DIRECTOR Telecommunications & Technology Finance, Pensions & Rural Action Caucus Intergovernmental Affairs [email protected] [email protected] 202.942.4230 202.942.4204

ABOUT NACo

The National Association of Counties (NACo) strengthens America’s counties, including nearly 40,000 county elected officials and 3.6 million county employees. Founded in 1935, NACo unites county officials to advocate for county government priorities in federal policymaking; promote exemplary county policies and practices; nurture leadership skills and expand knowledge networks; optimize county and taxpayer resources and cost savings; and enrich the public’s understanding of county government.

Each year, NACo’s Board of Directors, in consultation with over 1,400 county officials on 10 policy steering committees, adopt the association’s federal policy priorities. These policy priorities help shape NACo’s advocacy efforts on behalf of America’s counties.

National Association of Counties | February 2020 | 73 STRONGER COUNTIES. STRONGER AMERICA.

660 North Capitol Street, NW fb.com/NACoDC Suite 400 @NACoTweets Washington, DC 20001 youtube.com/NACoVideo 202.393.6226 / NACo.org linkedin.com/company/NACoDC